An In-Depth Look at ISDAY's Dividend Sustainability and Growth
Israel Discount Bank Ltd (ISDAY) recently announced a dividend of $0.41 per share, payable on 2024-04-19, with the ex-dividend date set for 2024-03-25. 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 Israel Discount Bank Ltd's dividend performance and assess its sustainability.
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Israel Discount Bank Ltd and its subsidiaries engage in banking and financial services. The bank is headquartered in Israel and earns the majority of its revenue domestically. The bank operates through several segments organized by customer type, including Household, Private banking, Minute businesses, Small businesses, Medium businesses, Large businesses, Institutional Bodies, Financial management, and Others.
Israel Discount Bank Ltd's Dividend Analysis
A Glimpse at Israel Discount Bank Ltd's Dividend History
Israel Discount Bank Ltd has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Israel Discount Bank Ltd's Dividend Yield and Growth
As of today, Israel Discount Bank Ltd currently has a 12-month trailing dividend yield of 4.69% and a 12-month forward dividend yield of 4.66%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Israel Discount Bank Ltd's annual dividend growth rate was 172.20%. Extended to a five-year horizon, this rate decreased to 50.10% per year. Based on Israel Discount Bank Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Israel Discount Bank Ltd stock as of today is approximately 35.73%.
Israel Discount Bank Ltd's Dividend Analysis
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, Israel Discount Bank Ltd's dividend payout ratio is 0.27.
Israel Discount Bank Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Israel Discount Bank Ltd's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Israel Discount Bank Ltd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Israel Discount Bank Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Israel Discount Bank Ltd's revenue has increased by approximately 14.30% per year on average, a rate that outperforms approximately 77.26% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Israel Discount Bank Ltd's earnings increased by approximately 56.70% per year on average, a rate that outperforms approximately 93.12% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 23.90%, which outperforms approximately 87.75% of global competitors.
Next Steps
In conclusion, the analysis of Israel Discount Bank Ltd's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics presents a comprehensive view of the company's financial health and dividend sustainability. The consistent dividend history, strong yield on cost, and favorable growth outlook suggest that Israel Discount Bank Ltd is positioned to continue rewarding shareholders with dividends in the foreseeable future. However, investors should always consider their investment goals and risk tolerance when evaluating dividend-paying stocks. For those interested in exploring further, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
