In This Article:
Understanding the Dividend Prospects and Stability of Assa Abloy AB
Assa Abloy AB (ASAZY) recently announced a dividend of $0.13 per share, payable on 2024-05-17, with the ex-dividend date set for 2024-04-25. 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 Assa Abloy AB's dividend performance and assess its sustainability.
What Does Assa Abloy AB Do?
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Assa Abloy is the world's largest supplier of locking and physical access solutions, sporting the world's largest installed base of locks that protect some of the most security-sensitive buildings, such as the European Parliament in Brussels. Three quarters of its revenue comes from government, commercial, and other nonresidential customers. The company's product base is centered on electromechanical locks, which require identification to unlock with a keycard, biometric scan, or personal identification number. Assa Abloy's products are sold directly to security systems integrators, locksmiths, hardware stores, and original equipment manufacturers.
A Glimpse at Assa Abloy AB's Dividend History
Assa Abloy AB has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Assa Abloy AB's Dividend Yield and Growth
As of today, Assa Abloy AB currently has a 12-month trailing dividend yield of 1.60% and a 12-month forward dividend yield of 1.69%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Assa Abloy AB's annual dividend growth rate was 7.60%. Extended to a five-year horizon, this rate decreased to 7.20% per year. And over the past decade, Assa Abloy AB's annual dividends per share growth rate stands at an impressive 10.50%.
Based on Assa Abloy AB's dividend yield and five-year growth rate, the 5-year yield on cost of Assa Abloy AB stock as of today is approximately 2.27%.
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, Assa Abloy AB's dividend payout ratio is 0.36.