Julius Bär Gruppe (VTX:BAER) Is Paying Out A Dividend Of CHF2.60

The board of Julius Bär Gruppe AG (VTX:BAER) has announced that it will pay a dividend of CHF2.60 per share on the 16th of April. This means the annual payment is 4.1% of the current stock price, which is above the average for the industry.

View our latest analysis for Julius Bär Gruppe

Julius Bär Gruppe's Dividend Forecasted To Be Well Covered By Earnings

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable.

Julius Bär Gruppe has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Julius Bär Gruppe's last earnings report, the payout ratio is at a decent 52%, meaning that the company is able to pay out its dividend with a bit of room to spare.

Looking forward, EPS is forecast to rise by 26.7% over the next 3 years. Analysts forecast the future payout ratio could be 50% over the same time horizon, which is a number we think the company can maintain.

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. Since 2015, the dividend has gone from CHF1.00 total annually to CHF2.60. This means that it has been growing its distributions at 10% per annum over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Julius Bär Gruppe has seen EPS rising for the last five years, at 18% per annum. 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. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.