Givaudan SA's Dividend Analysis
In This Article:
Assessing the Fragrance Giant's Dividend Profile
Givaudan SA (GVDNY) recently announced a dividend of $1.58 per share, payable on 2024-04-11, 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 Givaudan SA's dividend performance and assess its sustainability.
What Does Givaudan SA Do?
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Spun off from Roche in 2000, Givaudan is one of the world's leading flavour and fragrance manufacturers, with a presence in more than 80 countries. It sources more than 10,000 different ingredients from 100 countries. The company serves end consumer markets with fragrances for personal-, home-, and laundry-care brands, including prestige perfumes. In flavours, customers are in beverages, savoury, snacks, sweet goods, and dairy. Givaudan has nearly 10,000 employees, and its perfumery team is the largest in the industry.
A Glimpse at Givaudan SA's Dividend History
Givaudan SA has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a yearly basis. Givaudan SA has increased its dividend each year since 2011. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 13 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Givaudan SA's Dividend Yield and Growth
As of today, Givaudan SA currently has a 12-month trailing dividend yield of 1.59% and a 12-month forward dividend yield of 1.72%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Givaudan SA's annual dividend growth rate was 2.60%. Extended to a five-year horizon, this rate increased to 3.00% per year. And over the past decade, Givaudan SA's annual dividends per share growth rate stands at 5.20%.
Based on Givaudan SA's dividend yield and five-year growth rate, the 5-year yield on cost of Givaudan SA stock as of today is approximately 1.84%.
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, Givaudan SA's dividend payout ratio is 0.62.