Last update on 2024-06-27

DIeteren Group (DJDA.F) - Dividend Analysis (Final Score: 6/8)

An in-depth analysis of DIeteren Group's (DJDA.F) dividend policy performance, scored 6/8, highlighting its stability and profitability over 20 years.

Short Analysis - Dividend Score: 6

We're running DIeteren Group (DJDA.F) against the 8-criteria scoring system to evaluate the performance and stability of a company's dividend policy.

We analyzed DIeteren Group's (DJDA.F) dividend policy using an 8-criteria scorecard. The company scored a 6 out of 8, showcasing mixed results. 1. Dividend Yield: DIeteren Group has a yield of 1.6911%, which is higher than the industry average of 0.85%. This indicates strong returns through dividends compared to peers. 2. Dividend Growth Rate: Over the last 20 years, the growth rate has been inconsistent, with years of no payouts and spikes during some years. This inconsistency is a concern despite occasional high dividends. 3. Payout Ratio: Maintaining an average annual payout ratio below 65% is crucial for sustainability. The sustainability and reliability of their dividends based on earnings are paramount. 4. Dividends Covered by Earnings: Highlighted the importance of having enough earnings to cover dividends to avoid potential cuts. 5. Dividends Covered by Cash Flow: The significance of this metric indicates whether dividends are paid from the company's cash flow or reserves/debt. 6. Stable Dividends: Stability indicates the reliability of dividends, with significant drops pointing to potentially troubling financial conditions. 7. Payment Track Record: Although they have paid dividends consistently since 2011, they fall short of the 25-year mark. 8. Stock Repurchases: Details on stock repurchases weren't thoroughly discussed but are also essential for assessing shareholder value over time. Overall, DIeteren Group has shown both strengths and areas of concern in its dividend policy.

Insights for Value Investors Seeking Stable Income

Considering the mixed results of DIeteren Group's (DJDA.F) performance on the 8-criteria scorecard, it is worth a deeper investigation before making any investment decisions as a dividend-focused investor. The high dividend yield and recent growth trends are promising, but the inconsistency in the payout ratio and the lack of a long-term dividend payment track record are potential red flags. Investors should weigh the high returns against the risks associated with the dividend volatility and financial sustainability. Explore DIeteren Group further if you are open to potential variability in dividends for potentially higher returns.

For those who are interested in delving deeper into the specifics, the subsequent section provides a comprehensive exploration of the criteria.

Dividend Yield Higher than the Industry Average?

Dividend yield measures how much a company pays out in dividends each year relative to its stock price.

DIeteren Group's current dividend yield is 1.6911%, which is significantly higher than the industry average of 0.85%. This indicates that DIeteren Group provides a better return on investment through dividends compared to its industry peers. Over the last 20 years, the dividend yield has fluctuated considerably, peaking at 8.6784% in 2018. Despite some volatility, the group has generally maintained a higher yield than the industry average. Given the recent steady increase in dividend yield from 0.789% in 2021 to 1.6911% in 2023, this trend appears favorable for income-focused investors.

Average annual Growth Rate higher than 5% in the last 20 years?

The dividend growth rate is crucial as it indicates the company's ability to consistently increase payouts to shareholders over time, reflecting its financial health and profitability.

The analysis of the Dividend Ratio for DIeteren Group (DJDA.F) over the last 20 years presents a mixed picture. A high dividend growth rate is a sign of a company's robust financial health and its commitment to returning value to shareholders. However, the dividend payout trend for DIeteren Group shows significant inconsistency with years of zero dividend payouts followed by some years with unusual spikes. For instance, in 2012, the dividend ratio shot up to 88.2353, none in 2013, and 35 in 2021 before soaring to 55.5556 in 2022 and then dropping to 42.8571 in 2023. This erratic dividend payout might indicate a lack of stable profitability or a strategic reinvestment focus. Despite the impressive average dividend ratio of approximately 18.74%, this inconsistency may be a red flag for investors seeking reliable and steady income. Therefore, while there has been remarkable growth in certain years, the overall volatility and unpredictability of dividends remain a concern. This mixed trend could be viewed negatively, especially for conservative income-focused investors.

Average annual Payout Ratio lower than 65% in the last 20 years?

Explain the criterion for DIeteren Group (DJDA.F) and why it is important to consider

The payout ratio is an essential metric to gauge a company's dividend sustainability. A payout ratio under 65% is generally considered healthy, indicating that the company retains sufficient earnings to invest back into the business while still rewarding shareholders.

Dividends Well Covered by Earnings?

Explain the criterion for DIeteren Group (DJDA.F) and why it is important to consider

Dividends are an integral part of shareholder returns, and companies must ensure that their earnings are sufficient to cover these dividend payouts. Proper coverage of dividends by earnings reflects the sustainability and reliability of dividend payments, indicating financial stability and effective profit distribution by the company. If dividends are not well covered by the earnings, it might signal the potential for future dividend cuts, which is undesirable for income-focused investors.

Dividends Well Covered by Cash Flow?

Explain the criterion for DIeteren Group (DJDA.F) and why it is important to consider

Dividends covered by cash flow is a critical indicator for investors assessing the financial health and stability of a company. It measures the percentage of dividend payouts that are covered by the company's free cash flow. Ideally, this ratio should be above 1, indicating that the company generates sufficient cash flow to cover its dividend payments. A ratio below 1 means the dividends are being paid out of reserves or debt, which may not be sustainable long-term.

Stable Dividends Since the Company Began Paying Dividends?

Explain the criterion for DIeteren Group (DJDA.F) and why it is important to consider

Dividend stability is critical for income-seeking investors, who rely on a steady stream of passive income. A drop of more than 20% year-over-year can signify financial distress or changing corporate policies, which might jeopardize investor returns.

Dividends Paid for Over 25 Years?

ar company has a history of paying dividends for over 25 years?

Analyzing the dividend payment history of DIeteren Group (DJDA.F) reveals that the company started paying dividends in 2011, with a dividend per share of €0.425. Since then, the company has consistently paid dividends each year. Despite the noticeable growth in dividends per share, particularly the leap from €0.95 in 2017 to €2.85 in 2018, and the increasing trend continuing to €3 in 2023, which indicates a strong commitment to returning profits to shareholders, DIeteren Group (DJDA.F) hasn't yet established a 25-year dividend payment track record. Hence, it cannot be classified as a company with over 25 years of dividend payments. The continuous dividend payments over the past decade, however, showcase its financial stability and willingness to reward shareholders, demonstrating a positive trend in this respect but not meeting the specific 25-year criterion.

Reliable Stock Repurchases Over the Past 20 Years?

Explain the criterion for DIeteren Group (DJDA.F) and why it is important to consider

Reliable Stock Repurchases Over the Past 20 Years?