Bechtle AG's Dividend Analysis

GuruFocus Research

Thu, Jun 13, 2024, 4:05 AM 4 min read

An In-depth Look at Bechtle AG's Dividend Sustainability and Growth Prospects

Bechtle AG (BECTY) recently announced a dividend of $0.15 per share, payable on 2024-07-01, with the ex-dividend date set for 2024-06-13. 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 Bechtle AG's dividend performance and assess its sustainability.

What Does Bechtle AG Do?

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Bechtle AG is an information technology provider with operations in Germany, Austria, Switzerland, and other European countries. The company's customers are mainly in the industrial, trade, financial, and public sectors. Bechtle operates through two segments: IT System House and Managed Services, and IT E-commerce. The IT System House and Managed Services segment consist of IT strategy consulting, hardware and software sales, project planning and roll-out, system integrations, IT services and training, and client management, among others. The IT E-commerce segment includes e-procurement services, software solutions, and product marketing through the Internet and telemarketing.

A Glimpse at Bechtle AG's Dividend History

Bechtle AG has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down Bechtle AG's Dividend Yield and Growth

As of today, Bechtle AG currently has a 12-month trailing dividend yield of 1.37% and a 12-month forward dividend yield of 1.51%. This suggests an expectation of increased dividend payments over the next 12 months.

Over the past three years, Bechtle AG's annual dividend growth rate was 17.60%. Extended to a five-year horizon, this rate decreased to 17.00% per year. And over the past decade, Bechtle AG's annual dividends per share growth rate stands at an impressive 14.60%.

Based on Bechtle AG's dividend yield and five-year growth rate, the 5-year yield on cost of Bechtle AG stock as of today is approximately 3.00%.

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, Bechtle AG's dividend payout ratio is 0.31.

Bechtle AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bechtle AG's profitability 9 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. Bechtle AG's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.

Revenue is the lifeblood of any company, and Bechtle AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bechtle AG's revenue has increased by approximately 8.30% per year on average, a rate that underperforms than approximately 52.56% of global competitors.

The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Bechtle AG's earnings increased by approximately 11.30% per year on average, a rate that underperforms than approximately 49.38% of global competitors.

Lastly, the company's 5-year EBITDA growth rate of 14.20%, which underperforms than approximately 44.92% of global competitors.

Conclusion

Considering Bechtle AG's solid dividend payment history, robust growth rates, and strong profitability, the company presents itself as a promising candidate for dividend investors. With a sustainable payout ratio and positive growth metrics, Bechtle AG appears well-positioned to continue rewarding shareholders with attractive dividend payments. Investors should keep an eye on these metrics as they consider adding Bechtle AG to their portfolios.

GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

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