In This Article:
Insight into Julius Baer Gruppe AG's Upcoming Dividend Payment
Julius Baer Gruppe AG (JBAXY) recently announced a dividend of $0.6 per share, payable on 2024-05-01, with the ex-dividend date set for 2024-04-15. 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 Julius Baer Gruppe AG's dividend performance and assess its sustainability.
What Does Julius Baer Gruppe AG Do?
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Julius Baer Gruppe AG was founded in 1890 and expanded significantly in 2005 when it acquired three Swiss private banks and Global Asset Management from its far larger Swiss rival, UBS. In 2009, Baer spun off GAM as a separately listed firm. The acquisition of Merrill Lynch's wealth management operations outside of the U.S. in 2012 increased Baer's assets under management by 40% and increased its footprint outside of Europe. Julius Baer Gruppe AG is currently the largest pure-play private bank in Switzerland and the third-largest Swiss private bank. Baer provides private banking services principally to individuals in Switzerland and Europe and increasingly in Asia and other emerging markets.
A Glimpse at Julius Baer Gruppe AG's Dividend History
Julius Baer Gruppe AG has maintained a consistent dividend payment record since 2013, with dividends currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Julius Baer Gruppe AG's Dividend Yield and Growth
As of today, Julius Baer Gruppe AG currently has a 12-month trailing dividend yield of 5.16% and a 12-month forward dividend yield of 5.37%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Julius Baer Gruppe AG's annual dividend growth rate was 20.10%. Extended to a five-year horizon, this rate decreased to 15.00% per year. Based on Julius Baer Gruppe AG's dividend yield and five-year growth rate, the 5-year yield on cost of Julius Baer Gruppe AG stock as of today is approximately 10.38%.
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. As of 2023-12-31, Julius Baer Gruppe AG's dividend payout ratio is 1.19, which may suggest that the company's dividend may not be sustainable. Julius Baer Gruppe AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Julius Baer Gruppe AG's profitability 5 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.