In This Article:
Assessing the Sustainability of Industrivarden AB's Upcoming Dividend
Industrivarden AB (IDTVF) recently announced a dividend of $7.75 per share, payable on 2024-04-18, with the ex-dividend date set for 2024-04-12. 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 Industrivarden AB's dividend performance and assess its sustainability.
What Does Industrivarden AB Do?
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Industrivarden AB is an asset management firm with a long-term, activist orientation. The company's stated investment goal is to increase net asset value and generate returns in excess of the market cost of capital. Industrivarden makes investments in Nordic companies it can influence through corporate governance actions. It benchmarks its performance relative to the average return of the Stockholm Stock Exchange. The firm counts many public and private pension managers, foundations, and retail investors as its client base. Its security selection criteria emphasize enduring business models with promising growth prospects at an attractive valuation.
A Glimpse at Industrivarden AB's Dividend History
Industrivarden AB has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Industrivarden AB's Dividend Yield and Growth
As of today, Industrivarden AB currently has a 12-month trailing dividend yield of 1.91% and a 12-month forward dividend yield of 2.02%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Industrivarden AB's dividend yield and five-year growth rate, the 5-year yield on cost of Industrivarden AB stock as of today is approximately 1.91%.
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, Industrivarden AB's dividend payout ratio is 0.09.
Industrivarden AB's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Industrivarden AB's profitability 3 out of 10 as of 2024-03-31, suggesting the dividend may not be sustainable. The company has reported net profit in 8 years out of the past 10 years.