Investor AB's Dividend Analysis
In This Article:
Exploring the Sustainability and Growth of Investor AB's Dividends
Investor AB (IVSBF) recently announced a dividend of $3.6 per share, payable on 2024-05-15, with the ex-dividend date set for 2024-05-08. 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 Investor AB's dividend performance and assess its sustainability.
What Does Investor AB Do?
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Investor AB is an industrial holding company with a long-term, active investment portfolio strategy. The company focuses on investing in companies that emphasize innovation and product development. Investor AB's so-called "buy-to-build" strategy seeks not to divest holdings, but rather to develop them over time in order to close the gap between price and value. A majority of its equity investments are made in the country of Sweden and Scandinavia, where the company mostly operates.
A Glimpse at Investor AB's Dividend History
Investor AB has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Investor AB's Dividend Yield and Growth
As of today, Investor AB currently has a 12-month trailing dividend yield of 1.68% and a 12-month forward dividend yield of 1.81%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Investor AB's annual dividend growth rate was 25.10%. Extended to a five-year horizon, this rate decreased to 8.90% per year. And over the past decade, Investor AB's annual dividends per share growth rate stands at 8.20%.
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, Investor AB's dividend payout ratio is 0.08.
Investor AB's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Investor AB's profitability 3 out of 10 as of 2024-03-31, suggesting the dividend may not be sustainable. The company has reported net profit in 8 years out of the past 10 years.