In This Article:
Assessing the Sustainability of Intercorp Financial Services Inc's Dividend
Intercorp Financial Services Inc (NYSE:IFS) recently announced a dividend of $1 per share, payable on 2024-04-29, with the ex-dividend date set for 2024-04-17. 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 Intercorp Financial Services Inc's dividend performance and assess its sustainability.
What Does Intercorp Financial Services Inc Do?
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Intercorp Financial Services Inc is a provider of financial services through banking, insurance, and wealth management businesses, as well as the recent integration of Izipay enhancing its payments ecosystem. The company has four operating segments; the Banking segment includes Mainly loans, credit facilities, deposits, and current accounts, the Insurance segment provides life annuity products with single-premium payment and conventional life insurance products and other retail insurance products, the Wealth management segment provides brokerage and investment management services, and Payments segment provides administration services, operation and processing of credit and debit cards. Its geographical segments include Peru and Panama.
A Glimpse at Intercorp Financial Services Inc's Dividend History
Intercorp Financial Services Inc has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Intercorp Financial Services Inc's Dividend Yield and Growth
As of today, Intercorp Financial Services Inc currently has a 12-month trailing dividend yield of 5.28% and a 12-month forward dividend yield of 4.54%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Intercorp Financial Services Inc's annual dividend growth rate was -9.60%. Extended to a five-year horizon, this rate increased to 1.00% per year.
Based on Intercorp Financial Services Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Intercorp Financial Services Inc stock as of today is approximately 5.55%.
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, Intercorp Financial Services Inc's dividend payout ratio is 0.49.