In This Article:
An In-depth Look at Upcoming Dividends and Historical Performance
Bank Bradesco SA (NYSE:BBD) recently announced a dividend of $0 per share, payable on 2024-07-09, with the ex-dividend date set for 2024-06-05. 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 Bank Bradesco SA's dividend performance and assess its sustainability.
What Does Bank Bradesco SA Do?
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Banco Bradesco is Brazil's second-largest private bank, holding about 15% of deposits, and is the largest insurance provider in Brazil, with roughly 20%-25% market share. The bank is majority controlled by the Bradesco foundationa private nonprofit institution focused on education. Banking provides roughly 70% of profits, while the insurance segment contributes the remaining 30%. The bank is also a major asset manager with high-single-digit market share. In 2016, Bradesco acquired the Brazilian operations of HSBC.
A Glimpse at Bank Bradesco SA's Dividend History
Bank Bradesco SA has maintained a consistent dividend payment record since 2001. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Bank Bradesco SA's Dividend Yield and Growth
As of today, Bank Bradesco SA currently has a 12-month trailing dividend yield of 3.39% and a 12-month forward dividend yield of 1.81%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Bank Bradesco SA's annual dividend growth rate was 5.70%. Extended to a five-year horizon, this rate increased to 34.20% per year. And over the past decade, Bank Bradesco SA's annual dividends per share growth rate stands at an impressive 13.40%.
Based on Bank Bradesco SA's dividend yield and five-year growth rate, the 5-year yield on cost of Bank Bradesco SA stock as of today is approximately 14.76%.
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, Bank Bradesco SA's dividend payout ratio is 0.55. Bank Bradesco SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bank Bradesco SA's profitability 5 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.