In This Article:
Delving into Hexagon AB's Dividend Performance and Sustainability
Hexagon AB (HXGBY) recently announced a dividend of $0.14 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-05-01. 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 Hexagon AB's dividend performance and assess its sustainability.
What Does Hexagon AB Do?
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Hexagon AB provides information technology for industrial applications. It offers solutions in two segments namely geospatial enterprise solutions and industrial enterprise solutions. Each segment contributes roughly half of the firm's overall revenue. Hexagon's geospatial solutions are used for infrastructure, mining, agriculture, and public safety. The industrial enterprise solutions are used to measure and inspect the quality of complex parts used in manufacturing processes. Hexagon's largest geographic markets are Americas and EMEA, with each market contributing more than a fourth of the firm's overall revenue.
A Glimpse at Hexagon AB's Dividend History
Hexagon AB has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a yearly basis.
Hexagon AB has increased its dividend each year since 2012. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 12 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Hexagon AB's Dividend Yield and Growth
As of today, Hexagon AB currently has a 12-month trailing dividend yield of 1.19% and a 12-month forward dividend yield of 1.26%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Hexagon AB's annual dividend growth rate was 14.20%. Extended to a five-year horizon, this rate decreased to 11.20% per year. And over the past decade, Hexagon AB's annual dividends per share growth rate stands at an impressive 13.70%.
Based on Hexagon AB's dividend yield and five-year growth rate, the 5-year yield on cost of Hexagon AB stock as of today is approximately 2.02%.
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, Hexagon AB's dividend payout ratio is 0.37.