Unveiling the Dividend Profile of Boliden AB (BDNNY)
Boliden AB (BDNNY) recently announced a dividend of $1.46 per share, payable on 2024-05-15, 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 Boliden AB’s dividend performance and assess its sustainability.
What Does Boliden AB Do?
Boliden AB operates six mining areas and five smelters in Sweden, Norway, Finland, and Ireland. The company processes zinc, copper, gold, silver and other metals and is engaged in exploration, mining, smelting, and metals recycling. The company has two operating segments: business area smelters and business area mines. The business area mines division comprises six mining areas: Aitik, the Boliden Area, and Garpenberg in Sweden; Kylylahti and Kevitsa in Finland; and the Tara mine in Ireland. It includes both underground mines and open-pit mines. The company generates maximum revenue from Business area Smelters segment.
A Glimpse at Boliden AB’s Dividend History
Boliden AB has maintained a consistent dividend payment record since 2013. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Boliden AB’s Dividend Yield and Growth
As of today, Boliden AB currently has a 12-month trailing dividend yield of 4.59% and a 12-month forward dividend yield of 6.88%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Boliden AB’s annual dividend growth rate was 28.90%. Extended to a five-year horizon, this rate decreased to 12.90% per year. And over the past decade, Boliden AB’s annual dividends per share growth rate stands at an impressive 21.40%.
Based on Boliden AB’s dividend yield and five-year growth rate, the 5-year yield on cost of Boliden AB stock as of today is approximately 8.42%.
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, Boliden AB’s dividend payout ratio is 0.66.
Boliden AB’s profitability rank, offers an understanding of the company’s earnings prowess relative to its peers. GuruFocus ranks Boliden AB’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.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Boliden AB’s growth rank of 9 out of 10 suggests that the company’s growth trajectory is good relative to its competitors. Boliden AB’s revenue has increased by approximately 11.70% per year on average, a rate that outperforms approximately 53.87% of global competitors. The company’s 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Boliden AB’s earnings increased by approximately -4.00% per year on average, a rate that outperforms approximately 37.93% of global competitors. Lastly, the company’s 5-year EBITDA growth rate of 4.70%, which outperforms approximately 36.91% of global competitors.
Next Steps
Considering Boliden AB’s consistent dividend payments, robust dividend growth rate, manageable payout ratio, strong profitability, and positive growth metrics, the company presents itself as a potentially attractive option for value investors interested in dividend-yielding stocks. The data suggests that Boliden AB is not only maintaining its dividends but also has the capacity to increase them, underpinned by its solid financial health and growth prospects. Value investors may find Boliden AB’s stock to be a noteworthy candidate for their portfolios, especially those seeking income through dividends. As the next dividend date approaches, investors should consider whether Boliden AB aligns with their investment strategy and risk appetite. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
