In This Article:
Assessing the Sustainability and Growth of Dividends
Partners Group Holding AG (PGPHF) recently announced a dividend of $39 per share, payable on 2024-05-28, with the ex-dividend date set for 2024-05-24. 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 Partners Group Holding AG's dividend performance and assess its sustainability.
What Does Partners Group Holding AG Do?
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Partners Group Holding AG is a publicly-traded, private-market investment group with worldwide operations, primarily in North America and Europe. The company's investments originate mostly from its private equity, private debt, private real estate, and private infrastructure deal flow. Partners Group emphasizes a high hurdle in its selectivity rate. The company seeks to identify a diverse set of high-quality assets that are best positioned to benefit from sectoral and transformative growth trends across regions. It also takes an active role in supporting its investment acquisitions in executing their respective strategies, often through industry collaboration.
A Glimpse at Partners Group Holding AG's Dividend History
Partners Group Holding AG has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a yearly basis, and the company has increased its dividend each year since 2013, earning it the status of a dividend achiever. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Partners Group Holding AG's Dividend Yield and Growth
As of today, Partners Group Holding AG currently has a 12-month trailing dividend yield of 2.96% and a 12-month forward dividend yield of 3.18%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Partners Group Holding AG's annual dividend growth rate was 13.20%, extended to a five-year horizon, this rate increased to 14.10% per year, and over the past decade, the annual dividends per share growth rate stands at an impressive 20.60%.
Based on Partners Group Holding AG's dividend yield and five-year growth rate, the 5-year yield on cost of Partners Group Holding AG stock as of today is approximately 5.72%.
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, Partners Group Holding AG's dividend payout ratio is 1.00, which may suggest that the company's dividend may not be sustainable. Partners Group Holding AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Partners Group Holding AG's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.