Asics President on FY Forecast, Business Strategy
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
Ventia Services Group's (ASX:VNT) Upcoming Dividend Will Be Larger Than Last Year's
The board of Ventia Services Group Limited (ASX:VNT) has announced that the dividend on 8th of October will be increased to A$0.1071, which will be 15% higher than last year's payment of A$0.0935 which covered the same period. This makes the dividend yield about the same as the industry average at 3.6%. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Ventia Services Group's Payment Could Potentially Have Solid Earnings Coverage Solid dividend yields are great, but they only really help us if the payment is sustainable. The last payment made up 72% of earnings, but cash flows were much higher. This leaves plenty of cash for reinvestment into the business. The next year is set to see EPS grow by 22.9%. If the dividend continues along recent trends, we estimate the payout ratio will be 75%, which is in the range that makes us comfortable with the sustainability of the dividend. See our latest analysis for Ventia Services Group Ventia Services Group Is Still Building Its Track Record The dividend hasn't seen any major cuts in the past, but the company has only been paying a dividend for 3 years, which isn't that long in the grand scheme of things. The dividend has gone from an annual total of A$0.0147 in 2022 to the most recent total annual payment of A$0.2. This works out to be a compound annual growth rate (CAGR) of approximately 139% a year over that time. It is always nice to see strong dividend growth, but with such a short payment history we wouldn't be inclined to rely on it until a longer track record can be developed. The Dividend Looks Likely To Grow Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Ventia Services Group has impressed us by growing EPS at 50% per year over the past five years. However, Ventia Services Group isn't reinvesting a lot back into the business, so we wonder how quickly it will be able to grow in the future. Ventia Services Group Looks Like A Great Dividend Stock Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Taking the debate a bit further, we've identified 1 warning sign for Ventia Services Group that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Yahoo
13 minutes ago
- Yahoo
Orora (ASX:ORA) Has Announced A Dividend Of A$0.05
Orora Limited (ASX:ORA) will pay a dividend of A$0.05 on the 7th of October. This makes the dividend yield 4.3%, which will augment investor returns quite nicely. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Orora's Future Dividend Projections Appear Well Covered By Earnings If the payments aren't sustainable, a high yield for a few years won't matter that much. Prior to this announcement, the company was paying out 200% of what it was earning. Without profits and cash flows increasing, it would be difficult for the company to continue paying the dividend at this level. Looking forward, earnings per share is forecast to rise exponentially over the next year. Assuming the dividend continues along recent trends, we estimate that the payout ratio could reach 52%, which is in a comfortable range for us. View our latest analysis for Orora Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the annual payment back then was A$0.075, compared to the most recent full-year payment of A$0.10. This means that it has been growing its distributions at 2.9% per annum over that time. It's encouraging to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth anyway, which makes this less attractive as an income investment. Orora's Dividend Might Lack Growth With a relatively unstable dividend, it's even more important to see if earnings per share is growing. We are encouraged to see that Orora has grown earnings per share at 13% per year over the past five years. However, the company isn't reinvesting a lot back into the business, so we would expect the growth rate to slow down somewhat in the future. The Dividend Could Prove To Be Unreliable Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. In general, the distributions are a little bit higher than we would like, but we can't ignore the fact the quickly growing earnings gives this stock great potential in the future. Overall, we don't think this company has the makings of a good income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. To that end, Orora has 3 warning signs (and 1 which is concerning) we think you should know about. Is Orora 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) 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.
Yahoo
42 minutes ago
- Yahoo
Servcorp's (ASX:SRV) Dividend Will Be A$0.14
The board of Servcorp Limited (ASX:SRV) has announced that it will pay a dividend of A$0.14 per share on the 2nd of October. This makes the dividend yield 4.3%, which is above the industry average. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Servcorp's Payment Could Potentially Have Solid Earnings Coverage A big dividend yield for a few years doesn't mean much if it can't be sustained. Prior to this announcement, Servcorp's dividend was comfortably covered by both cash flow and earnings. This indicates that quite a large proportion of earnings is being invested back into the business. The next year is set to see EPS grow by 42.4%. Assuming the dividend continues along recent trends, we think the payout ratio could be 37% by next year, which is in a pretty sustainable range. Check out our latest analysis for Servcorp Dividend Volatility While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The annual payment during the last 10 years was A$0.22 in 2015, and the most recent fiscal year payment was A$0.28. This implies that the company grew its distributions at a yearly rate of about 2.4% over that duration. It's encouraging to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth anyway, which makes this less attractive as an income investment. The Dividend Looks Likely To Grow Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Servcorp has seen EPS rising for the last five years, at 50% per annum. Servcorp is clearly able to grow rapidly while still returning cash to shareholders, positioning it to become a strong dividend payer in the future. Servcorp Looks Like A Great Dividend Stock In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. 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. 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. Taking the debate a bit further, we've identified 1 warning sign for Servcorp that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
