Standard Chartered PLC's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance of SCBFY
Standard Chartered PLC (SCBFY) recently announced a dividend of $0.53 per share, payable on 2024-06-03, with the ex-dividend date set for 2024-03-08. 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 Standard Chartered PLC's dividend performance and assess its sustainability.
What Does Standard Chartered PLC Do?
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Standard Chartered Bank was established in 1853 by Royal Charter in the United Kingdom, with holding company Standard Chartered PLC incorporated in 1969. The bank is domiciled in the United Kingdom and provides banking services across 60 countries, primarily in Asia, Africa, the Middle East, and the UK. The bulk of the business is in corporate and transaction banking, financial markets, and corporate finance. The bank has strong retail franchises focusing on the affluent segment in Hong Kong, Singapore, and certain countries in Africa. The bank has also launched a ventures division to focus on financial technology, including digital banks in Hong Kong and Singapore, online payment, and digital assets.
A Glimpse at Standard Chartered PLC's Dividend History
Standard Chartered PLC has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Standard Chartered PLC's Dividend Yield and Growth
As of today, Standard Chartered PLC currently has a 12-month trailing dividend yield of 2.26% and a 12-month forward dividend yield of 6.05%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Standard Chartered PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Standard Chartered PLC stock as of today is approximately 2.26%.
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, Standard Chartered PLC's dividend payout ratio is 0.16.
Standard Chartered PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Standard Chartered PLC's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Standard Chartered PLC'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 Standard Chartered PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Standard Chartered PLC's revenue has increased by approximately 12.40% per year on average, a rate that outperforms approximately 73.13% 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, Standard Chartered PLC's earnings increased by approximately 55.20% per year on average, a rate that outperforms approximately 93.08% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 16.90%, which outperforms approximately 75.39% of global competitors.
Concluding Insights on Standard Chartered PLC's Dividend Fortitude
In conclusion, Standard Chartered PLC demonstrates a strong history of dividend payments with a promising forward yield, suggesting a potential increase in dividends. The company's conservative payout ratio, combined with its fair profitability and growth ranks, offers reassurance about the sustainability of its dividends. Solid revenue and earnings growth further bolster confidence in the bank's ability to maintain its dividend policy. As investors weigh their options, Standard Chartered PLC presents a compelling case for those interested in steady income streams backed by a financial institution with a global footprint and a forward-looking approach to banking and technology.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
