Andritz AG's Dividend Analysis
In This Article:
Assessing the Sustainability of Andritz AG's Upcoming Dividend
Andritz AG (ADRZF) recently announced a dividend of $2.5 per share, payable on 2024-03-28, with the ex-dividend date set for 2024-03-25. 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 Andritz AG's dividend performance and assess its sustainability.
What Does Andritz AG Do?
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Andritz AG is a producer of high-technology industrial machinery and operates through four operating segments: ANDRITZ Pulp & Paper provides sustainable technology, automation, and service solutions for the production of all types of pulp, paper, board, and tissue, ANDRITZ Metals includes suppliers of technologies, plants, and digital solutions in metal forming, and also includes automation and software solutions, process know-how, and service, ANDRITZ Hydro includes suppliers of electromechanical equipment and services for hydropower plants, and ANDRITZ Separation provides mechanical and thermal technologies as well as services and the related automation solutions for solid/liquid separation, serving the chemical, environmental, food, and the mining and minerals industries.
A Glimpse at Andritz AG's Dividend History
Andritz AG has maintained a consistent dividend payment record since 2008. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Andritz AG's Dividend Yield and Growth
As of today, Andritz AG currently has a 12-month trailing dividend yield of 3.60% and a 12-month forward dividend yield of 4.24%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Andritz AG's annual dividend growth rate was 61.30%. Extended to a five-year horizon, this rate decreased to 7.10% per year. And over the past decade, Andritz AG's annual dividends per share growth rate stands at 5.20%.
Based on Andritz AG's dividend yield and five-year growth rate, the 5-year yield on cost of Andritz AG stock as of today is approximately 5.07%.
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, Andritz AG's dividend payout ratio is 0.41.