In This Article:
Assessing the Sustainability of Allreal Holding Ltd's Dividend
Allreal Holding Ltd (ALRHF) recently announced a dividend of $7 per share, payable on 2024-04-25, with the ex-dividend date set for 2024-04-23. 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 Allreal Holding Ltd's dividend performance and assess its sustainability.
What Does Allreal Holding Ltd Do?
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Warning! GuruFocus has detected 10 Warning Signs with ALRHF.
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Allreal Holding Ltd is a real estate portfolio company in Switzerland. The company divides its business into two segments: real estate and project & development. The real estate division has three subdivisions: portfolio management, real estate management, and Building Management. The company's investment portfolio is mainly composed of commercial properties with a small section of residential investments. The project & development division offers a range of services, stretching from site and ground analysis through the construction of the project. The company develops projects in all segments of real estate for private and institutional investors and owners, and its portfolio. The company operates exclusively in Switzerland with the majority of its business in the Zurich area.
A Glimpse at Allreal Holding Ltd's Dividend History
Allreal Holding Ltd 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 Allreal Holding Ltd's Dividend Yield and Growth
As of today, Allreal Holding Ltd currently has a 12-month trailing dividend yield of 4.58% and a 12-month forward dividend yield of 4.52%. This suggests an expectation of a slight decrease in dividend payments over the next 12 months.
Over the past three years, Allreal Holding Ltd's annual dividend growth rate was 1.20%. Extended to a five-year horizon, this rate increased to 2.30% per year. And over the past decade, Allreal Holding Ltd's annual dividends per share growth rate stands at 3.00%.
Based on Allreal Holding Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Allreal Holding Ltd stock as of today is approximately 5.13%.
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, Allreal Holding Ltd's dividend payout ratio is 1.75, which may suggest that the company's dividend could be at risk.