In This Article:
Understanding Bankinter SA's Upcoming Dividend Payout
Bankinter SA (BKNIY) recently announced a dividend of $0.12 per share, payable on 2024-04-08, with the ex-dividend date set for 2024-03-26. 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 Bankinter SA's dividend performance and assess its sustainability.
What Does Bankinter SA Do?
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Bankinter SA is a bank operating primarily in Spain. Its services include financial planning, asset management, retail banking, corporate banking, treasury, and international banking. Customer loans constitute the overwhelming majority of earning assets on the balance sheet. The bank's strategy emphasizes innovation, as well as both organic and acquisitive growth, including international expansion beginning with Portugal. Bankinter's stated purpose for this expansion is to diversify its revenue base away from traditional spread lending and toward fee and commission income from private banking and asset management. To this end, the company has also placed an increasingly greater emphasis on corporate banking and higher-margin consumer finance.
A Glimpse at Bankinter SA's Dividend History
Bankinter SA has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Bankinter SA's Dividend Yield and Growth
As of today, Bankinter SA currently has a 12-month trailing dividend yield of 6.87% and a 12-month forward dividend yield of 7.15%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Bankinter SA's annual dividend growth rate was -1.50%. Extended to a five-year horizon, this rate decreased to -3.20% per year. And over the past decade, Bankinter SA's annual dividends per share growth rate stands at 9.90%.
Based on Bankinter SA's dividend yield and five-year growth rate, the 5-year yield on cost of Bankinter SA stock as of today is approximately 5.84%.
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 2023-09-30, Bankinter SA's dividend payout ratio is 0.43.