Julius Bär Gruppe (VTX:BAER) Is Due To Pay A Dividend Of CHF2.60

Julius Bär Gruppe AG (VTX:BAER) has announced that it will pay a dividend of CHF2.60 per share on the 16th of April. Based on this payment, the dividend yield on the company's stock will be 4.6%, which is an attractive boost to shareholder returns.

See our latest analysis for Julius Bär Gruppe

Julius Bär Gruppe's Payment Expected To Have Solid Earnings Coverage

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

Julius Bär Gruppe has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. 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.

Looking forward, EPS is forecast to rise by 34.7% over the next 3 years. The future payout ratio could be 49% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

Julius Bär Gruppe Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2015, the annual payment back then was CHF1.00, compared to the most recent full-year payment of CHF2.60. This implies that the company grew its distributions at a yearly rate of about 10% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. Julius Bär Gruppe has impressed us by growing EPS at 18% per year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.

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. Taking this all into consideration, this looks like it could be a good dividend opportunity.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. Earnings growth generally bodes well for the future value of company dividend payments. See if the 14 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.