Svenska Handelsbanken AB's Dividend Analysis
Assessing the Sustainability of SVNLY's Dividend Payouts
Svenska Handelsbanken AB (SVNLY) recently announced a dividend of $0.63 per share, payable on 2024-04-11, 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 Svenska Handelsbanken AB's dividend performance and assess its sustainability.
Overview of Svenska Handelsbanken AB
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Handelsbanken is one of the largest Swedish banks with significant exposure to the Swedish mortgage market; about 44% of total loans are tied to the Swedish real estate market. Outside of Sweden, the bank operates primarily in the U.K. and Netherlands. Handelsbanken generates about three fourths of its income through its interest spread-based business, including mortgages, household loans, and corporate loans to large and small enterprises.
Svenska Handelsbanken AB's Dividend Track Record
Svenska Handelsbanken 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.
Dividend Yield and Growth Prospects
As of today, Svenska Handelsbanken AB currently has a 12-month trailing dividend yield of 6.57% and a 12-month forward dividend yield of 10.76%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Svenska Handelsbanken AB's dividend yield and five-year growth rate, the 5-year yield on cost of Svenska Handelsbanken AB stock as of today is approximately 6.57%.
Evaluating Dividend Sustainability
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, Svenska Handelsbanken AB's dividend payout ratio is 0.57.
Svenska Handelsbanken AB's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Svenska Handelsbanken 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.
Future Growth Indicators
To ensure the sustainability of dividends, a company must have robust growth metrics. Svenska Handelsbanken 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 Svenska Handelsbanken AB's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Svenska Handelsbanken AB's revenue has increased by approximately 15.40% per year on average, a rate that outperforms approximately 80.53% 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, Svenska Handelsbanken AB's earnings increased by approximately 20.70% per year on average, a rate that outperforms approximately 67.49% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 9.30%, which outperforms approximately 57.24% of global competitors.
Concluding Insights on SVNLY's Dividend Outlook
In conclusion, Svenska Handelsbanken AB's upcoming dividend, historical payouts, and growth indicators present a comprehensive picture for investors. The bank's consistent dividend history, combined with a solid yield and a reasonable payout ratio, aligns with the interests of value investors seeking reliable income streams. Moreover, the company's fair profitability and growth prospects indicate a potential for sustained dividend payments and possibly future increases. As investors continue to evaluate Svenska Handelsbanken AB's financial health and market position, the bank's ability to navigate the complex financial landscape will be critical in maintaining its dividend attractiveness. Value investors may consider whether Svenska Handelsbanken AB fits into their long-term investment strategy, especially in the context of a diversified portfolio aimed at balancing growth and income. For further research on high-dividend yield opportunities, GuruFocus Premium users can utilize 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.
