Skandinaviska Enskilda Banken AB's Dividend Analysis
Exploring the Dividend Prospects of Skandinaviska Enskilda Banken AB
Skandinaviska Enskilda Banken AB (SVKEF) recently announced a dividend of $8.5 per share, payable on 2024-03-26, with the ex-dividend date set for 2024-03-20. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Skandinaviska Enskilda Banken AB's dividend performance and assess its sustainability.
What Does Skandinaviska Enskilda Banken AB Do?
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Skandinaviska Enskilda Banken is a Swedish universal bank with a strong focus on the corporate lending sector. The bank operates in the Nordics, the Baltics, Germany, and the United Kingdom but derives the majority of its operating profits from Sweden. SEB specializes in corporate lending, particularly to large corporations. Additionally, it serves large midcorporate and multinational companies, financial institutions, and about small and medium-size enterprises. It also serves about 4 million private customers in Sweden and the Baltics. The bank offers asset management, life insurance, and to a lesser extent private banking services to its clients.
A Glimpse at Skandinaviska Enskilda Banken AB's Dividend History
Skandinaviska Enskilda Banken AB has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Skandinaviska Enskilda Banken AB's Dividend Yield and Growth
As of today, Skandinaviska Enskilda Banken AB currently has a 12-month trailing dividend yield of 4.42% and a 12-month forward dividend yield of 5.52%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Skandinaviska Enskilda Banken AB's dividend yield and five-year growth rate, the 5-year yield on cost of Skandinaviska Enskilda Banken AB stock as of today is approximately 4.42%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Skandinaviska Enskilda Banken AB's dividend payout ratio is 0.38.
Skandinaviska Enskilda Banken AB's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Skandinaviska Enskilda Banken AB's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Skandinaviska Enskilda Banken AB's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Skandinaviska Enskilda Banken AB's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Skandinaviska Enskilda Banken AB's revenue has increased by approximately 18.40% per year on average, a rate that outperforms approximately 85.16% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Skandinaviska Enskilda Banken AB's earnings increased by approximately 33.00% per year on average, a rate that outperforms approximately 81.8% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 15.40%, which outperforms approximately 71.36% of global competitors.
Next Steps
In conclusion, Skandinaviska Enskilda Banken AB's upcoming dividend payment, along with its commendable dividend history, offers an attractive proposition for income-focused investors. The bank's solid dividend growth rate, sustainable payout ratio, consistent profitability, and positive growth metrics paint a promising picture for future dividend sustainability. Investors seeking to enrich their portfolios with dividend-paying stocks should consider the robust financial health and growth prospects of Skandinaviska Enskilda Banken AB. Could this be the right time to bank on Skandinaviska Enskilda Banken AB's dividend potential?
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
