Latest news with #dividendprojections
Yahoo
4 days ago
- Business
- Yahoo
Computershare's (ASX:CPU) Shareholders Will Receive A Bigger Dividend Than Last Year
Computershare Limited's (ASX:CPU) dividend will be increasing from last year's payment of the same period to $0.48 on 15th of September. Even though the dividend went up, the yield is still quite low at only 2.3%. 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. Computershare's Future Dividend Projections Appear Well Covered By Earnings If it is predictable over a long period, even low dividend yields can be attractive. Based on the last payment, Computershare was quite comfortably earning enough to cover the dividend. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth. Earnings per share is forecast to rise by 41.0% over the next year. If recent patterns in the dividend continues, the payout ratio in 12 months could be 75% which is a bit high but can definitely be sustainable. View our latest analysis for Computershare Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of $0.232 in 2015 to the most recent total annual payment of $0.624. This works out to be a compound annual growth rate (CAGR) of approximately 10% a year over that time. Dividends have grown rapidly over this time, but with cuts in the past we are not certain that this stock will be a reliable source of income in the future. The Dividend Looks Likely To Grow With a relatively unstable dividend, it's even more important to see if earnings per share is growing. It's encouraging to see that Computershare has been growing its earnings per share at 13% a year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders. Computershare Looks Like A Great Dividend Stock In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. 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 Computershare that investors should take into consideration. 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.
Yahoo
4 days ago
- Business
- Yahoo
Computershare's (ASX:CPU) Shareholders Will Receive A Bigger Dividend Than Last Year
Computershare Limited's (ASX:CPU) dividend will be increasing from last year's payment of the same period to $0.48 on 15th of September. Even though the dividend went up, the yield is still quite low at only 2.3%. 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. Computershare's Future Dividend Projections Appear Well Covered By Earnings If it is predictable over a long period, even low dividend yields can be attractive. Based on the last payment, Computershare was quite comfortably earning enough to cover the dividend. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth. Earnings per share is forecast to rise by 41.0% over the next year. If recent patterns in the dividend continues, the payout ratio in 12 months could be 75% which is a bit high but can definitely be sustainable. View our latest analysis for Computershare Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of $0.232 in 2015 to the most recent total annual payment of $0.624. This works out to be a compound annual growth rate (CAGR) of approximately 10% a year over that time. Dividends have grown rapidly over this time, but with cuts in the past we are not certain that this stock will be a reliable source of income in the future. The Dividend Looks Likely To Grow With a relatively unstable dividend, it's even more important to see if earnings per share is growing. It's encouraging to see that Computershare has been growing its earnings per share at 13% a year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders. Computershare Looks Like A Great Dividend Stock In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. 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 Computershare that investors should take into consideration. 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
