02-06-2025
EQB (TSE:EQB) Will Pay A Larger Dividend Than Last Year At CA$0.53
EQB Inc.'s (TSE:EQB) dividend will be increasing from last year's payment of the same period to CA$0.53 on 30th of June. Even though the dividend went up, the yield is still quite low at only 2.2%.
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Even a low dividend yield can be attractive if it is sustained for years on end.
EQB has a long history of paying out dividends, with its current track record at a minimum of 10 years. Using data from its latest earnings report, EQB's payout ratio sits at 20%, an extremely comfortable number that shows that it can pay its dividend.
Looking forward, EPS is forecast to rise by 34.9% over the next 3 years. The future payout ratio could be 19% over that time period, according to analyst estimates, which is a good look for the future of the dividend.
See our latest analysis for EQB
The company has an extended history of paying stable dividends. The annual payment during the last 10 years was CA$0.34 in 2015, and the most recent fiscal year payment was CA$2.12. This implies that the company grew its distributions at a yearly rate of about 20% over that duration. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.
Investors could be attracted to the stock based on the quality of its payment history. EQB has seen EPS rising for the last five years, at 12% per annum. EQB definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
Overall, a dividend increase is always good, and we think that EQB is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 8 analysts we track are forecasting for EQB for free with public analyst estimates for the company. Is EQB 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.
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