Unwrapping the Sweet Dividend Prospects of a Chocolate Giant
Chocoladefabriken Lindt & Spruengli AG (CHLSY) recently announced a dividend of $0.16 per share, payable on 2024-05-09, with the ex-dividend date set for 2024-04-22. 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 Chocoladefabriken Lindt & Spruengli AGs dividend performance and assess its sustainability.
What Does Chocoladefabriken Lindt & Spruengli AG Do?
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Swiss-based Chocoladefabriken Lindt & Spruengli is a manufacturer of premium chocolate. Key brands include Lindt, Lindor, Ghirardelli, Russell Stover, Whitman's, and Caffarel. The company bought U.S.-based Russell Stover, its largest-ever acquisition, in 2014. It derives the bulk of its sales from Europe (46% of its consolidated base) but also competes in North America (41%) and the rest of the world (13%). The company operates 11 manufacturing plants in Europe and the United States. Its distribution network includes 500 own stores.
A Glimpse at Chocoladefabriken Lindt & Spruengli AG's Dividend History
Chocoladefabriken Lindt & Spruengli AG has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a yearly basis.
Chocoladefabriken Lindt & Spruengli AG has increased its dividend each year since -. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 2024 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Chocoladefabriken Lindt & Spruengli AG's Dividend Yield and Growth
As of today, Chocoladefabriken Lindt & Spruengli AG currently has a 12-month trailing dividend yield of 1.15% and a 12-month forward dividend yield of 1.25%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Chocoladefabriken Lindt & Spruengli AG's annual dividend growth rate was 7.40%. Extended to a five-year horizon, this rate decreased to 6.70% per year. And over the past decade, Chocoladefabriken Lindt & Spruengli AG's annual dividends per share growth rate stands at 8.00%.
Based on Chocoladefabriken Lindt & Spruengli AG's dividend yield and five-year growth rate, the 5-year yield on cost of Chocoladefabriken Lindt & Spruengli AG stock as of today is approximately 1.59%.
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, Chocoladefabriken Lindt & Spruengli AG's dividend payout ratio is 0.44.
Chocoladefabriken Lindt & Spruengli AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Chocoladefabriken Lindt & Spruengli AG's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Chocoladefabriken Lindt & Spruengli AG's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Chocoladefabriken Lindt & Spruengli AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Chocoladefabriken Lindt & Spruengli AG's revenue has increased by approximately 10.20% per year on average, a rate that outperforms approximately 59.69% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Chocoladefabriken Lindt & Spruengli AG's earnings increased by approximately 29.30% per year on average, a rate that outperforms approximately 72.63% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 7.50%, which outperforms approximately 52.93% of global competitors.
Next Steps
In conclusion, Chocoladefabriken Lindt & Spruengli AG presents an appealing profile for dividend-seeking investors, with a history of consistent dividend payments and growth. The company's moderate payout ratio, coupled with high profitability and solid growth metrics, suggests that its dividend is sustainable. However, investors should always consider the broader market trends and the company's strategic initiatives when evaluating the long-term prospects of their dividend income. Could Chocoladefabriken Lindt & Spruengli AG's sweet dividend be a treat that keeps on giving? That's a question investors must ponder as they analyze the company's financials and market position.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
