Unveiling Grupo Financiero Galicia SA's Dividend Performance and Sustainability
A Comprehensive Analysis of the Company's Dividend History, Yield, Growth, and Future Prospects
Grupo Financiero Galicia SA (NASDAQ:GGAL) recently announced a dividend of $0.12 per share, payable on 2023-10-02, with the ex-dividend date set for 2023-09-22. As investors eagerly anticipate this upcoming payment, it's crucial to evaluate the company's dividend history, yield, and growth rates. Using data from GuruFocus, we delve into Grupo Financiero Galicia SA's dividend performance and assess its sustainability.
About Grupo Financiero Galicia SA
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Grupo Financiero Galicia SA is a financial service holding company that offers general banking services, proprietary brand credit card services, personal loans, insurance, and other services. The company operates in Argentina and Uruguay, with the majority of its revenue generated from Argentina.
Grupo Financiero Galicia SA's Dividend History
Grupo Financiero Galicia SA has maintained a consistent dividend payment record since 2013, currently distributing dividends on a quarterly basis. The chart below shows annual Dividends Per Share for tracking historical trends.
Dividend Yield and Growth of Grupo Financiero Galicia SA
As of today, Grupo Financiero Galicia SA has a 12-month trailing dividend yield of 3.20% and a 12-month forward dividend yield of 3.94%, indicating an expected increase in dividend payments over the next 12 months. The company's dividend yield of 3.20% is near a 10-year high and outperforms 34.63% of global competitors in the Banks industry, making it an attractive proposition for income investors.
Based on Grupo Financiero Galicia SA's dividend yield and five-year growth rate, the 5-year yield on cost of Grupo Financiero Galicia SA stock as of today is approximately 3.20%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
The sustainability of dividends is determined by the company's payout ratio, which provides insights into the portion of earnings the company distributes as dividends. A lower ratio indicates that the company retains a significant part of its earnings, ensuring the availability of funds for future growth and unexpected downturns. As of 2022-12-31, Grupo Financiero Galicia SA's dividend payout ratio is 0.11.
Grupo Financiero Galicia SA's profitability rank is 7 out of 10 as of 2022-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
For the sustainability of dividends, robust growth metrics are crucial. Grupo Financiero Galicia SA's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. The company's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Grupo Financiero Galicia SA's revenue has increased by approximately 28.90% per year on average, a rate that outperforms approximately 95.5% of global competitors.
Conclusion
In conclusion, Grupo Financiero Galicia SA's consistent dividend payments, impressive growth rate, low payout ratio, good profitability, and robust growth metrics make it a compelling investment for income investors. The company's dividend performance and sustainability are indicative of its strong financial health and promising future prospects. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
