Kering SA (PPRUY) recently announced a dividend of $1.01 per share, payable on 2024-05-21, with the ex-dividend date set for 2024-04-30. Investors are eagerly anticipating this upcoming payment while also examining the company’s dividend history, yield, and growth rates. Using data from GuruFocus, we can delve into Kering SA’s dividend performance and assess its sustainability.
Kering is the world’s second-largest luxury goods conglomerate, following LVMH. Its flagship brand, Gucci, contributes over 50% of revenue and nearly 70% of operating profits. Other prominent brands under Kering include Bottega Veneta and Saint Laurent, along with smaller luxury brands like Alexander McQueen, Balenciaga, and Boucheron.
To determine the sustainability of Kering SA’s dividend, it is crucial to evaluate the company’s payout ratio. As of 2023-12-31, Kering SA’s dividend payout ratio stands at 0.55, indicating a healthy distribution of earnings. Additionally, the company’s profitability rank of 9 out of 10 suggests strong profitability prospects, with consistent positive net income over the past decade.
Looking towards the future, Kering SA’s growth metrics are promising. With a growth rank of 9 out of 10, the company’s revenue per share and 3-year revenue growth rate demonstrate a robust revenue model. Furthermore, the 3-year EPS growth rate of approximately 16.60% per year and the 5-year EBITDA growth rate of 4.90% outperform a significant portion of global competitors.
In conclusion, Kering SA’s upcoming dividend payment, supported by a history of consistent dividend growth, reflects its dedication to shareholder returns. The strong dividend yield, in conjunction with favorable payout ratio and profitability rank, suggests sustainable dividends. Additionally, the company’s impressive growth metrics indicate a promising future for continued dividend payments. Investors interested in Kering SA for its dividend potential should also consider its overall financial health and growth prospects.