In This Article:
Assessing the Upcoming Dividend and Historical Performance of Prysmian SpA
Prysmian SpA (PRYMY) recently announced a dividend of $0.37 per share, payable on 2024-05-08, with the ex-dividend date set for 2024-04-24. 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 Prysmian SpA's dividend performance and assess its sustainability.
What Does Prysmian SpA Do?
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Prysmian SpA is an Italian manufacturer of electric power transmission and telecommunications cables and systems. Its business is organized in three segments--Projects, which focuses on the execution of underground and submarine cable projects; Energy Products, which provides power distribution, and industrial and network components; and Telecom, which makes cable systems and connectivity products. More than half of the firm's revenue is generated in the Europe, Middle East, and Africa regions, with the rest coming from North America, Latin America, and Asia-Pacific regions.
A Glimpse at Prysmian SpA's Dividend History
Prysmian SpA has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Prysmian SpA's Dividend Yield and Growth
As of today, Prysmian SpA currently has a 12-month trailing dividend yield of 1.23% and a 12-month forward dividend yield of 1.39%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Prysmian SpA's annual dividend growth rate was 33.90%. Extended to a five-year horizon, this rate decreased to 9.80% per year. And over the past decade, Prysmian SpA's annual dividends per share growth rate stands at 2.60%.
Based on Prysmian SpA's dividend yield and five-year growth rate, the 5-year yield on cost of Prysmian SpA stock as of today is approximately 1.96%.
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, Prysmian SpA's dividend payout ratio is 0.25.