BAE Systems awarded $139.6M Army contract modification
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a day ago
- Yahoo
BAE Systems (LON:BA.) Is Due To Pay A Dividend Of £0.135
The board of BAE Systems plc (LON:BA.) has announced that it will pay a dividend of £0.135 per share on the 3rd of December. The payment will take the dividend yield to 1.8%, which is in line with the average for the industry. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. BAE Systems' Projected Earnings Seem Likely To Cover Future Distributions Solid dividend yields are great, but they only really help us if the payment is sustainable. The last dividend was quite easily covered by BAE Systems' earnings. This means that a large portion of its earnings are being retained to grow the business. Over the next year, EPS is forecast to expand by 44.9%. 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. See our latest analysis for BAE Systems BAE Systems 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 annual payment during the last 10 years was £0.205 in 2015, and the most recent fiscal year payment was £0.33. This means that it has been growing its distributions at 4.9% per annum over that time. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer. The Dividend Looks Likely To Grow The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that BAE Systems has grown earnings per share at 12% per year over the past five years. 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. BAE Systems 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. All of these factors considered, we think this has solid potential as a dividend 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. Taking the debate a bit further, we've identified 1 warning sign for BAE Systems 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
Yahoo
a day ago
- Yahoo
BAE Systems (LON:BA.) Is Due To Pay A Dividend Of £0.135
The board of BAE Systems plc (LON:BA.) has announced that it will pay a dividend of £0.135 per share on the 3rd of December. The payment will take the dividend yield to 1.8%, which is in line with the average for the industry. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. BAE Systems' Projected Earnings Seem Likely To Cover Future Distributions Solid dividend yields are great, but they only really help us if the payment is sustainable. The last dividend was quite easily covered by BAE Systems' earnings. This means that a large portion of its earnings are being retained to grow the business. Over the next year, EPS is forecast to expand by 44.9%. 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. See our latest analysis for BAE Systems BAE Systems 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 annual payment during the last 10 years was £0.205 in 2015, and the most recent fiscal year payment was £0.33. This means that it has been growing its distributions at 4.9% per annum over that time. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer. The Dividend Looks Likely To Grow The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that BAE Systems has grown earnings per share at 12% per year over the past five years. 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. BAE Systems 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. All of these factors considered, we think this has solid potential as a dividend 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. Taking the debate a bit further, we've identified 1 warning sign for BAE Systems 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
Yahoo
a day ago
- Yahoo
Up 30%+ in just 12 months! These FTSE 100 stocks are top buys to consider
These FTSE 100 shares have rocketed in value during the last year. And I believe they have scope for further substantial gains. Here's why. BAE Systems Confidence in the defence sector remains sky high as NATO countries increase military spending. According to an IG customer survey, defence shares will be the strongest-performing sector over the next six months. Interestingly, 55% of those asked think it will be the best-performing industry in the period, too. That pushed AI off top spot (45% of respondents). With enthusiasm for the sector ramping up, I think investing in one of the Footsie's famous defence shares is worth considering. BAE Systems (LSE:BA.) is one that demands attention after a recent price pullback. BAE shares are up roughly 39% over the last year, but fell on Wednesday (30 July) after a poor reception to H1 results, extending recent weakness. It dropped after announcing a fall in the order backlog, from record levels of £77.8bn in December to £75.4bn in June. Contract awards can be lumpy, and, as we've just seen, this is a threat to defence companies' share prices. Given lasting supply chain issues, too, BAE shares aren't without risk. Yet, I also believe the outlook here is hugely positive on balance, and so it's also worth serious consideration. Indeed, the firm also upgraded its full-year sales and profits guidance as customer demand continues flying. It did the same thing last summer. BAE now expects sales to grow between 8% and 10% this year. Underlying earnings before interest and tax (EBIT) growth is projected at 9%-11%. Okay, the defence giant's shares don't come cheap following the last year's price gains. They trade on a forward price-to-earnings (P/E) ratio of 23.8 times, far above the 10-year average of 13.9 times. But I believe this elevated valuation fairly reflects BAE's much-improved earnings outlook. It's a top stock to take a close look at. HSBC Investors seeking classic value might want to give HSBC (LSE:HSBA) serious consideration as well. I myself hold shares in the FTSE firm, and after its recent price decline I'm tempted to increase my holdings. It trades on a forward-looking P/E ratio of 9.3 times. And the bank's corresponding dividend yield is a substantial 5.4%. HSBC shares are up approximately 36% over the last 12 months, but dropped on Wednesday. It announced Q2 profit before tax of $6.3bn, down 29% year on year and missing forecasts. It also declared a $2.1bn impairment charge related to its stake in China's Bank of Communications. Pressure in its core Asian marketplace remains a danger as trade tariffs dent economic growth. But the long-term outlook remains strong, with rising populations and increasing personal incomes driving banking product demand. Encouragingly, HSBC is pivoting closer to these high-growth regions by selling weaker-performing assets in other parts of the world. And it's targeting especially lucrative areas like wealth management to build future profits upon. And, in the meantime, HSBC is targeting cost savings of $3bn to support the bottom line and provide ammunition for further investment. I think it remains too cheap to ignore. The post Up 30%+ in just 12 months! These FTSE 100 stocks are top buys to consider appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool HSBC Holdings is an advertising partner of Motley Fool Money. Royston Wild has positions in HSBC Holdings. The Motley Fool UK has recommended BAE Systems and HSBC Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
