by The board of Julius Bär Gruppe AG (VTX: Baer) has announced that it will pay a dividend on 16 April, with investors receiving CHF2.60 per share. This means that the annual payment is 4.2% of the current stock price, which is above average for industry.
Although it is great to have a strong dividend yield, we must also consider whether the payment is sustainable.
Julius Bär Gruppe has settled as a dividend payment company with more than 10 years of history of distributing income to shareholders. Based on the last winning report of Julius Bär Gruppe, the payment ratio is a considerable 52%, which means that the company can pay its dividend with a little space.
EPS is expected to expand by 26.7%in the coming 3 years. Analysts estimate that the future payout ratio will be 50% in the same period, which is in the reach that makes us comfortable with the sustainability of the dividend.
View our latest analysis for Julius Bär Gruppe
Even about a long history of paying dividends, the benefits of the company have been remarkably stable. Since 2015, the annual payment was then CHF1.00, compared to the most recent payment of the entire year of CHF2.60. This is a compound annual growth rate (CAGR) of about 10% per year at that time. It is good to see that there has been a strong dividend growth and that there have been no cuts for a long time.
Investors who have held shares in the company in recent years will be happy with the dividend income they have received. Julius Bär Gruppe has impressed us by growing by 18% per year by 18% per year in the last five years. The income is on the upward trend and only pays a small part of that income to shareholders.
In summary, it is good to see that the dividend remains consistent, and we do not think there is some reason to suspect that this can change in the medium term. The company deserves easy enough to cover its dividend payments and it is great to see that this income is translated into cash flow. If we consider all this, it seems that it can be a good chance.
Market movements bear witness to how highly appreciated a consistent dividend policy is compared with a policy that is more unpredictable. In the meantime, despite the importance of dividend payments, they are not the only factors that our readers need to know when assessing a company. Profit growth is generally a good omen for the future value of dividend payments of the company. See if the 15 Julius Bär Gruppe analysts that we follow predict the constant growth with our free Report on estimates by analysts for the company. Looking for more high -productive dividend ideas? Try our Collection of strong dividend payers.
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