Yahoo Finance Carrefour's Dividend Analysis
Exploring the Sustainability and Growth of Carrefour's Dividends
Carrefour (CRRFY) recently announced a dividend of $0.19 per share, payable on 2024-06-21, with the ex-dividend date set for 2024-05-29. 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 Carrefour's dividend performance and assess its sustainability.
What Does Carrefour Do?
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Carrefour is a multiformat retailer with operations in more than 30 countries, featuring tens of thousands of shops globally, over 1,000 drive-thru locations, and about 340,000 employees. Although hypermarkets still account for the bulk of sales in France, the company, founded in 1959, is shifting its focus from its traditional large hypermarket model to developing smaller stores, thereby reducing its exposure to the nonfood sector. Approximately 73% of sales are generated in Europe, with the remaining 27% coming from Latin America.
A Glimpse at Carrefour's Dividend History
Carrefour has maintained a consistent dividend payment record since 2010, distributing dividends on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Carrefour's Dividend Yield and Growth
As of today, Carrefour currently has a 12-month trailing dividend yield of 3.38% and a 12-month forward dividend yield of 5.24%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, Carrefour's annual dividend growth rate was 34.50%. However, this rate decreased to 6.10% per year over a five-year horizon, and over the past decade, the annual dividends per share growth rate stands at -4.10%.
Based on Carrefour's dividend yield and five-year growth rate, the 5-year yield on cost of Carrefour stock as of today is approximately 4.54%.
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, Carrefour's dividend payout ratio is 0.32. Carrefour's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Carrefour's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Carrefour's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Carrefour's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Carrefour's revenue has increased by approximately 9.70% per year on average, a rate that outperforms approximately 67.46% 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, Carrefour's earnings increased by approximately 18.00% per year on average, a rate that outperforms approximately 66.24% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 21.60%, which outperforms approximately 76.05% of global competitors.
Next Steps
Considering Carrefour's consistent dividend payments, robust dividend growth rate, manageable payout ratio, and solid profitability and growth metrics, the company appears to be a compelling choice for value investors seeking stable dividend income. As we look to the future, Carrefour's strategic shifts and financial health may continue to support its dividend sustainability. For further exploration of high-dividend yield opportunities, GuruFocus Premium users can utilize 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.
