Evonik Industries AG's Dividend Analysis
In This Article:
An In-depth Look at Evonik Industries AG's Dividend Sustainability and Growth Prospects
Evonik Industries AG (EVKIY) recently announced a dividend of $0.63 per share, payable on 2024-06-24, with the ex-dividend date set for 2024-06-06. 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 Evonik Industries AG's dividend performance and assess its sustainability.
What Does Evonik Industries AG Do?
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Evonik Industries is a German chemical company offering a mix of speciality and commodity chemical products. It has a number-one to -three market position in 80% of its businesses. Around 45% of sales are generated in Europe, while the key markets of North America and Asia account for 25% and 20% of sales, respectively. The company is organized into four major segments: specialty additives, smart materials, nutrition and care, and performance materials.
A Glimpse at Evonik Industries AG's Dividend History
Evonik Industries AG has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Evonik Industries AG's Dividend Yield and Growth
As of today, Evonik Industries AG currently has a 12-month trailing dividend yield of 5.42% and a 12-month forward dividend yield of 5.51%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Evonik Industries AG's annual dividend growth rate was 0.60%. Extended to a five-year horizon, this rate decreased to 0.40% per year. Based on Evonik Industries AG's dividend yield and five-year growth rate, the 5-year yield on cost of Evonik Industries AG stock as of today is approximately 5.53%.
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 2024-03-31, Evonik Industries AG's dividend payout ratio is 1.22, which may suggest that the company's dividend may not be sustainable.