Julius Bär Gruppe (VTX:BAER) Has Announced A Dividend Of CHF2.60

Julius Bär Gruppe AG (VTX:BAER) will pay a dividend of CHF2.60 on the 16th of April. This means the annual payment is 4.3% of the current stock price, which is above the average for the industry.

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Julius Bär Gruppe's Earnings Will Easily Cover The Distributions

If the payments aren't sustainable, a high yield for a few years won't matter that much.

Julius Bär Gruppe has a long history of paying out dividends, with its current track record at a minimum of 10 years. Taking data from its last earnings report, calculating for the company's payout ratio shows 52%, which means that Julius Bär Gruppe would be able to pay its last dividend without pressure on the balance sheet.

Over the next 3 years, EPS is forecast to expand by 26.7%. Analysts estimate the future payout ratio will be 50% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.

View our latest analysis for Julius Bär Gruppe

Julius Bär Gruppe Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The dividend has gone from an annual total of CHF1.00 in 2015 to the most recent total annual payment of CHF2.60. This works out to be a compound annual growth rate (CAGR) of approximately 10% a year over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Julius Bär Gruppe has seen EPS rising for the last five years, at 18% per annum. Since earnings per share is growing at an acceptable rate, and the payout policy is balanced, we think the company is positioning itself well to grow earnings and dividends in the future.

We Really Like Julius Bär Gruppe's Dividend

Overall, we like to see the dividend staying consistent, and we think Julius Bär Gruppe might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 15 Julius Bär Gruppe analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Julius Bär Gruppe not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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