In This Article:
Exploring the Sustainability and Growth of Lanxess AG's Dividends
Lanxess AG (LNXSY) recently announced a dividend of $0.02 per share, payable on 2024-06-13, with the ex-dividend date set for 2024-05-28. 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 Lanxess AG's dividend performance and assess its sustainability.
What Does Lanxess AG Do?
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Lanxess is a German chemical company that was originally spun out of Bayer. Lanxess has visibly decommoditized its portfolio in recent years by divesting its synthetic rubber business and is moving toward becoming a specialty chemicals company in the fields of consumer protection chemicals, specialty additives, intermediates, and engineering plastics.
A Glimpse at Lanxess AG's Dividend History
Lanxess AG 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 Lanxess AG's Dividend Yield and Growth
As of today, Lanxess AG currently has a 12-month trailing dividend yield of 4.10% and a 12-month forward dividend yield of 0.39%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Lanxess AG's annual dividend growth rate was 3.40%. Extended to a five-year horizon, this rate increased to 5.50% per year. And over the past decade, Lanxess AG's annual dividends per share growth rate stands at 6.10%.
Based on Lanxess AG's dividend yield and five-year growth rate, the 5-year yield on cost of Lanxess AG stock as of today is approximately 5.36%.
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, Lanxess AG's dividend payout ratio is 0.24.
Lanxess AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Lanxess AG's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.