Legrand SA's Dividend Analysis
In This Article:
An In-depth Look at the Upcoming Dividend and Historical Performance
Legrand SA (LGRDY) recently announced a dividend of $0.45 per share, payable on 2024-06-20, with the ex-dividend date set for 2024-05-30. 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 Legrand SA's dividend performance and assess its sustainability.
What Does Legrand SA Do?
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Legrand is a global manufacturer of low-voltage electrical components, which are mostly used in residential (40%) and nonresidential (40%) buildings. Its products include wiring devices, cable management, lighting, and audio visual equipment, sold under approximately 80 brands across 180 countries. Its products are sold primarily through specialist distributors that subsequently sell to installers/electricians. Legrand is a major supplier to global electrical equipment distributors, including Rexel and Sonepar. North America and Europe each account for 40% of group sales.
A Glimpse at Legrand SA's Dividend History
Legrand SA has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a yearly basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Legrand SA's Dividend Yield and Growth
As of today, Legrand SA currently has a 12-month trailing dividend yield of 1.80% and a 12-month forward dividend yield of 2.00%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Legrand SA's annual dividend growth rate was 12.30%. Extended to a five-year horizon, this rate decreased to 8.10% per year. And over the past decade, Legrand SA's annual dividends per share growth rate stands at 7.60%.
Based on Legrand SA's dividend yield and five-year growth rate, the 5-year yield on cost of Legrand SA stock as of today is approximately 2.66%.
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, Legrand SA's dividend payout ratio is 0.46.