24-05-2025
Allgeier (ETR:AEIN) Will Pay A Dividend Of €0.50
Allgeier SE's (ETR:AEIN) investors are due to receive a payment of €0.50 per share on 2nd of July. This means the annual payment is 2.9% of the current stock price, which is above the average for the industry.
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If the payments aren't sustainable, a high yield for a few years won't matter that much. However, Allgeier's earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.
The next year is set to see EPS grow by 156.4%. If the dividend continues along recent trends, we estimate the payout ratio will be 30%, which is in the range that makes us comfortable with the sustainability of the dividend.
View our latest analysis for Allgeier
It is great to see that Allgeier has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. The last annual payment of €0.50 was flat on the annual payment from7 years ago. Modest dividend growth is good to see, especially with the payments being relatively stable. However, the payment history is relatively short and we wouldn't want to rely on this dividend too much.
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. It's encouraging to see that Allgeier has been growing its earnings per share at 43% a year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.
In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. 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. However, there are other things to consider for investors when analysing stock performance. Case in point: We've spotted 3 warning signs for Allgeier (of which 1 makes us a bit uncomfortable!) you should know about. Is Allgeier not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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