Stora Enso Oyj's Dividend Analysis
An In-Depth Look at the Upcoming Dividend and Historical Performance
Stora Enso Oyj (SEOAY) recently announced a dividend of $0.11 per share, payable on 2024-04-04, with the ex-dividend date set for 2024-03-21. 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 Stora Enso Oyj's dividend performance and assess its sustainability.
What Does Stora Enso Oyj Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Stora Enso Oyj is at the forefront of the bioeconomy, developing and producing solutions based on wood and biomass for a variety of industries and applications globally. It operates through segments like Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, and others. The company is a leader in eco-friendly packaging products, catering to top brands in diverse markets such as retail, e-commerce, and industrial sectors. The Packaging Solutions segment is a significant revenue driver for Stora Enso Oyj.
A Glimpse at Stora Enso Oyj's Dividend History
Stora Enso Oyj has established a reputation for consistent dividend payments since 2001, favoring an annual distribution schedule. Below is a chart that outlines the company's historical Dividends Per Share to help track its performance over time.
Breaking Down Stora Enso Oyj's Dividend Yield and Growth
Stora Enso Oyj currently boasts a 12-month trailing dividend yield of 4.86% and a 12-month forward dividend yield of 0.82%, indicating an anticipated decrease in dividend payments over the coming year. The company's three-year annual dividend growth rate is an impressive 26.00%, which tapers to 6.50% over five years and settles at 5.60% over the past decade. These figures reflect a solid history of dividend growth, resulting in a 5-year yield on cost of approximately 6.66% for Stora Enso Oyj stock as of today.
The Sustainability Question: Payout Ratio and Profitability
When evaluating dividend sustainability, the dividend payout ratio is crucial as it reflects the proportion of earnings allocated to dividends. Stora Enso Oyj's payout ratio is currently 0.00 as of 2023-12-31, suggesting that the company is retaining its earnings, which bodes well for future growth and resilience. The company's profitability rank is 6 out of 10, indicating fair profitability with a consistent record of net profit over the past decade.
Growth Metrics: The Future Outlook
Stora Enso Oyj's growth rank of 6 suggests a balanced growth outlook. Its revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of 3.20%, albeit underperforming 64.62% of global competitors. The company's 3-year EPS growth rate and 5-year EBITDA growth rate present challenges, underperforming 93.33% and 94.2% of global competitors, respectively.
Next Steps
Considering Stora Enso Oyj's consistent dividend history, current yield, and growth rates, investors must weigh these strengths against the sustainability concerns raised by the payout ratio and profitability metrics. With a fair growth outlook, Stora Enso Oyj remains a noteworthy contender for those seeking dividend-paying stocks. However, the underperformance in revenue and earnings growth rates suggests a cautious approach to this investment. For investors seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium offers the High Dividend Yield Screener as a valuable resource for identifying potential opportunities.
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.
