In This Article:
Assessing the Sustainability and Performance of Dividends
Hochtief AG (HOCFF) recently announced a dividend of $4.4 per share, payable on 2024-07-05, with the ex-dividend date set for 2024-04-26. 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 Hochtief AG's dividend performance and assess its sustainability.
What Does Hochtief AG Do?
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Hochtief AG develops and constructs building and infrastructure projects. It works on complex projects in transportation, energy, urban infrastructure, and mining markets. It expands transportation networks with roads, bridges, and tunnels, or designs and constructs office buildings, hospitals, and power plants. The company leans on expertise and technical know-how in developing, financing, building, and operating in designated business areas. Also, it will partner with external groups to work on specific components of a project. Hochtief reports operating segments by regional divisions: Americas, Asia Pacific, and Europe. The Americas and the Asia Pacific account for the majority of sales and are where the company's assets are located.
A Glimpse at Hochtief AG's Dividend History
Hochtief AG has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Hochtief AG's Dividend Yield and Growth
As of today, Hochtief AG currently has a 12-month trailing dividend yield of 4.17% and a 12-month forward dividend yield of 4.54%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Hochtief AG's annual dividend growth rate was -11.60%. Extended to a five-year horizon, this rate increased to -6.70% per year. And over the past decade, Hochtief AG's annual dividends per share growth rate stands at an impressive 12.40%.
Based on Hochtief AG's dividend yield and five-year growth rate, the 5-year yield on cost of Hochtief AG stock as of today is approximately 2.95%.
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, Hochtief AG's dividend payout ratio is 0.58.