Latest news with #CHF3.90
Yahoo
17-03-2025
- Business
- Yahoo
Orell Füssli's (VTX:OFN) Upcoming Dividend Will Be Larger Than Last Year's
Orell Füssli AG (VTX:OFN) has announced that it will be increasing its periodic dividend on the 19th of May to CHF4.40, which will be 13% higher than last year's comparable payment amount of CHF3.90. This will take the dividend yield to an attractive 4.5%, providing a nice boost to shareholder returns. Check out our latest analysis for Orell Füssli If the payments aren't sustainable, a high yield for a few years won't matter that much. Before this announcement, Orell Füssli was paying out 87% of earnings, but a comparatively small 47% of free cash flows. In general, cash flows are more important than earnings, so we are comfortable that the dividend will be sustainable going forward, especially with so much cash left over for reinvestment. Over the next year, EPS is forecast to expand by 3.1%. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 59% which brings it into quite a comfortable range. Looking back, Orell Füssli's dividend hasn't been particularly consistent. This suggests that the dividend might not be the most reliable. The dividend has gone from an annual total of CHF2.80 in 2016 to the most recent total annual payment of CHF3.90. This means that it has been growing its distributions at 3.8% per annum over that time. We're glad to see the dividend has risen, but with a limited rate of growth and fluctuations in the payments the total shareholder return may be limited. Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. We are encouraged to see that Orell Füssli has grown earnings per share at 11% per year over the past five years. Past earnings growth has been decent, but unless this is one of those rare businesses that can grow without additional capital investment or marketing spend, we'd generally expect the higher payout ratio to limit its future growth prospects. In summary, while it's always good to see the dividend being raised, we don't think Orell Füssli's payments are rock solid. The payments haven't been particularly stable and we don't see huge growth potential, but with the dividend well covered by cash flows it could prove to be reliable over the short term. We would probably look elsewhere for an income investment. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for Orell Füssli that investors should take into consideration. 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. Sign in to access your portfolio
Yahoo
02-03-2025
- Business
- Yahoo
Bossard Holding (VTX:BOSN) Is Reducing Its Dividend To CHF3.90
Bossard Holding AG (VTX:BOSN) has announced it will be reducing its dividend payable on the 17th of April to CHF3.90, which is 2.5% lower than what investors received last year for the same period. The dividend yield will be in the average range for the industry at 2.0%. See our latest analysis for Bossard Holding We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. The last dividend was quite easily covered by Bossard Holding's 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 53.0%. Assuming the dividend continues along recent trends, we think the payout ratio could be 31% by next year, which is in a pretty sustainable range. Although the company has a long dividend history, it has been cut at least once in the last 10 years. The dividend has gone from an annual total of CHF3.00 in 2015 to the most recent total annual payment of CHF4.00. This works out to be a compound annual growth rate (CAGR) of approximately 2.9% a year 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. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. It's not great to see that Bossard Holding's earnings per share has fallen at approximately 2.7% per year over the past five years. If the company is making less over time, it naturally follows that it will also have to pay out less in dividends. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this can turn into a longer term trend. Overall, it's not great to see that the dividend has been cut, but this might be explained by the payments being a bit high previously. In the past, the payments have been unstable, but over the short term the dividend could be reliable, with the company generating enough cash to cover it. We don't think Bossard Holding is a great stock to add to your portfolio if income is your focus. 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. Taking the debate a bit further, we've identified 2 warning signs for Bossard Holding that investors need to be conscious of moving forward. If you are a dividend investor, you might also want to look at our curated list of high yield 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.
