Latest news with #HICLInfrastructure
Yahoo
27-07-2025
- Business
- Yahoo
Why It Might Not Make Sense To Buy HICL Infrastructure PLC (LON:HICL) For Its Upcoming Dividend
HICL Infrastructure PLC (LON:HICL) stock is about to trade ex-dividend in three days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. This means that investors who purchase HICL Infrastructure's shares on or after the 31st of July will not receive the dividend, which will be paid on the 30th of September. The company's next dividend payment will be UK£0.0208 per share, and in the last 12 months, the company paid a total of UK£0.083 per share. Looking at the last 12 months of distributions, HICL Infrastructure has a trailing yield of approximately 6.6% on its current stock price of UK£1.252. If you buy this business for its dividend, you should have an idea of whether HICL Infrastructure's dividend is reliable and sustainable. So we need to investigate whether HICL Infrastructure can afford its dividend, and if the dividend could grow. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. An unusually high payout ratio of 362% of its profit suggests something is happening other than the usual distribution of profits to shareholders. When the dividend payout ratio is high, as it is in this case, the dividend is usually at greater risk of being cut in the future. View our latest analysis for HICL Infrastructure Click here to see how much of its profit HICL Infrastructure paid out over the last 12 months. Have Earnings And Dividends Been Growing? Companies with falling earnings are riskier for dividend shareholders. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's not ideal to see HICL Infrastructure's earnings per share have been shrinking at 2.9% a year over the previous five years. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. HICL Infrastructure has delivered an average of 1.3% per year annual increase in its dividend, based on the past 10 years of dividend payments. To Sum It Up From a dividend perspective, should investors buy or avoid HICL Infrastructure? Earnings per share are in decline and HICL Infrastructure is paying out what we feel is an uncomfortably high percentage of its profit as dividends. Generally we think dividend investors should avoid businesses in this situation, as high payout ratios and declining earnings can lead to the dividend being cut. All things considered, we're not optimistic about its dividend prospects, and would be inclined to leave it on the shelf for now. So if you're still interested in HICL Infrastructure despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. Case in point: We've spotted 2 warning signs for HICL Infrastructure you should be aware of. A common investing mistake is buying the first interesting stock you see. Here you can find a full 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. 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
26-07-2025
- Business
- Yahoo
HICL Infrastructure's (LON:HICL) Dividend Will Be Increased To £0.0208
HICL Infrastructure PLC (LON:HICL) has announced that it will be increasing its periodic dividend on the 30th of September to £0.0208, which will be 1.0% higher than last year's comparable payment amount of £0.0206. This takes the dividend yield to 6.6%, which shareholders will be pleased with. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Estimates Indicate HICL Infrastructure's Could Struggle to Maintain Dividend Payments In The Future If the payments aren't sustainable, a high yield for a few years won't matter that much. Before making this announcement, the company's dividend was much higher than its earnings. This situation certainly isn't ideal, and could place significant strain on the balance sheet if it continues. If the company can't turn things around, EPS could fall by 2.9% over the next year. If the dividend continues along the path it has been on recently, the payout ratio in 12 months could be 366%, which is definitely a bit high to be sustainable going forward. View our latest analysis for HICL Infrastructure HICL Infrastructure 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 dividend has gone from an annual total of £0.0724 in 2015 to the most recent total annual payment of £0.0825. This works out to be a compound annual growth rate (CAGR) of approximately 1.3% a year over that time. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive. The Dividend's Growth Prospects Are Limited Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Let's not jump to conclusions as things might not be as good as they appear on the surface. HICL Infrastructure has seen earnings per share falling at 2.9% per year over the last five years. Declining earnings will inevitably lead to the company paying a lower dividend in line with lower profits. HICL Infrastructure's Dividend Doesn't Look Sustainable In summary, while it's always good to see the dividend being raised, we don't think HICL Infrastructure's payments are rock solid. Although they have been consistent in the past, we think the payments are a little high to be sustained. This company is not in the top tier of income providing stocks. 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. For example, we've picked out 2 warning signs for HICL Infrastructure that investors should know about before committing capital to this stock. 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
17-05-2025
- Business
- Yahoo
Don't Buy HICL Infrastructure PLC (LON:HICL) For Its Next Dividend Without Doing These Checks
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see HICL Infrastructure PLC (LON:HICL) is about to trade ex-dividend in the next 4 days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase HICL Infrastructure's shares before the 22nd of May to receive the dividend, which will be paid on the 30th of June. The company's upcoming dividend is UK£0.0207 a share, following on from the last 12 months, when the company distributed a total of UK£0.083 per share to shareholders. Based on the last year's worth of payments, HICL Infrastructure stock has a trailing yield of around 7.2% on the current share price of UK£1.15. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. HICL Infrastructure distributed an unsustainably high 162% of its profit as dividends to shareholders last year. Without extenuating circumstances, we'd consider the dividend at risk of a cut. When a company pays out a dividend that is not well covered by profits, the dividend is generally seen as more vulnerable to being cut. See our latest analysis for HICL Infrastructure Click here to see how much of its profit HICL Infrastructure paid out over the last 12 months. Businesses with shrinking earnings are tricky from a dividend perspective. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're discomforted by HICL Infrastructure's 20% per annum decline in earnings in the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. HICL Infrastructure has delivered an average of 1.3% per year annual increase in its dividend, based on the past 10 years of dividend payments. Should investors buy HICL Infrastructure for the upcoming dividend? Earnings per share are in decline and HICL Infrastructure is paying out what we feel is an uncomfortably high percentage of its profit as dividends. Generally we think dividend investors should avoid businesses in this situation, as high payout ratios and declining earnings can lead to the dividend being cut. These characteristics don't generally lead to outstanding dividend performance, and investors may not be happy with the results of owning this stock for its dividend. Having said that, if you're looking at this stock without much concern for the dividend, you should still be familiar of the risks involved with HICL Infrastructure. We've identified 2 warning signs with HICL Infrastructure (at least 1 which is concerning), and understanding them should be part of your investment process. If you're in the market for strong dividend payers, we recommend checking 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. Sign in to access your portfolio
Yahoo
17-05-2025
- Business
- Yahoo
Don't Buy HICL Infrastructure PLC (LON:HICL) For Its Next Dividend Without Doing These Checks
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see HICL Infrastructure PLC (LON:HICL) is about to trade ex-dividend in the next 4 days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase HICL Infrastructure's shares before the 22nd of May to receive the dividend, which will be paid on the 30th of June. The company's upcoming dividend is UK£0.0207 a share, following on from the last 12 months, when the company distributed a total of UK£0.083 per share to shareholders. Based on the last year's worth of payments, HICL Infrastructure stock has a trailing yield of around 7.2% on the current share price of UK£1.15. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. HICL Infrastructure distributed an unsustainably high 162% of its profit as dividends to shareholders last year. Without extenuating circumstances, we'd consider the dividend at risk of a cut. When a company pays out a dividend that is not well covered by profits, the dividend is generally seen as more vulnerable to being cut. See our latest analysis for HICL Infrastructure Click here to see how much of its profit HICL Infrastructure paid out over the last 12 months. Businesses with shrinking earnings are tricky from a dividend perspective. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're discomforted by HICL Infrastructure's 20% per annum decline in earnings in the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. HICL Infrastructure has delivered an average of 1.3% per year annual increase in its dividend, based on the past 10 years of dividend payments. Should investors buy HICL Infrastructure for the upcoming dividend? Earnings per share are in decline and HICL Infrastructure is paying out what we feel is an uncomfortably high percentage of its profit as dividends. Generally we think dividend investors should avoid businesses in this situation, as high payout ratios and declining earnings can lead to the dividend being cut. These characteristics don't generally lead to outstanding dividend performance, and investors may not be happy with the results of owning this stock for its dividend. Having said that, if you're looking at this stock without much concern for the dividend, you should still be familiar of the risks involved with HICL Infrastructure. We've identified 2 warning signs with HICL Infrastructure (at least 1 which is concerning), and understanding them should be part of your investment process. If you're in the market for strong dividend payers, we recommend checking 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. 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
