In This Article:
Exploring the Sustainability and Growth Prospects of Edenred SE's Dividends
Edenred SE (EDNMY) recently announced a dividend of $0.59 per share, payable on June 27, 2024, with the ex-dividend date set for June 7, 2024. 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 Edenred SE's dividend performance and assess its sustainability.
What Does Edenred SE Do?
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Edenred is a France-listed prepaid corporate services provider operating in more than 40 countries. The company was listed in 2010 following a spinoff from hotel group Accor. Edenred's main business, Ticket Restaurant, offers prepaid meal vouchers that employers provide to their employees as an additional benefit. The company is also involved in other areas such as prepaid fuel cards and payment and expense-management systems.
A Glimpse at Edenred SE's Dividend History
Edenred SE has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Edenred SE's Dividend Yield and Growth
As of today, Edenred SE currently has a 12-month trailing dividend yield of 2.13% and a 12-month forward dividend yield of 2.37%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Edenred SE's annual dividend growth rate was 12.60%. Extended to a five-year horizon, this rate decreased to 3.00% per year. And over the past decade, Edenred SE's annual dividends per share growth rate stands at 7.40%.
Based on Edenred SE's dividend yield and five-year growth rate, the 5-year yield on cost of Edenred SE stock as of today is approximately 2.47%.
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 December 31, 2023, Edenred SE's dividend payout ratio is 0.79, which may suggest that the company's dividend may not be sustainable.