Latest news with #payoutratio
Yahoo
01-06-2025
- Business
- Yahoo
National Bank of Canada (TSE:NA) Is Increasing Its Dividend To CA$1.18
The board of National Bank of Canada (TSE:NA) has announced that it will be paying its dividend of CA$1.18 on the 1st of August, an increased payment from last year's comparable dividend. Although the dividend is now higher, the yield is only 3.5%, which is below the industry average. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. Having distributed dividends for at least 10 years, National Bank of Canada has a long history of paying out a part of its earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 42%, which means that National Bank of Canada would be able to pay its last dividend without pressure on the balance sheet. Over the next 3 years, EPS is forecast to expand by 9.4%. Analysts estimate the future payout ratio will be 44% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend. See our latest analysis for National Bank of Canada The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was CA$1.92 in 2015, and the most recent fiscal year payment was CA$4.72. This works out to be a compound annual growth rate (CAGR) of approximately 9.4% a year over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios. Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that National Bank of Canada has grown earnings per share at 9.4% per year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders. We should note that National Bank of Canada has issued stock equal to 15% of shares outstanding. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Overall, a dividend increase is always good, and we think that National Bank of Canada is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Taking the debate a bit further, we've identified 1 warning sign for National Bank of Canada 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. 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
18-05-2025
- Business
- Yahoo
Old National Bancorp (NASDAQ:ONB) Will Pay A Dividend Of $0.14
The board of Old National Bancorp (NASDAQ:ONB) has announced that it will pay a dividend of $0.14 per share on the 16th of June. This means the annual payment will be 2.5% of the current stock price, which is lower than the industry average. We've discovered 1 warning sign about Old National Bancorp. View them for free. If it is predictable over a long period, even low dividend yields can be attractive. Having distributed dividends for at least 10 years, Old National Bancorp has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Old National Bancorp's payout ratio of 32% is a good sign as this means that earnings decently cover dividends. Looking forward, EPS is forecast to rise by 90.1% over the next 3 years. The future payout ratio could be 21% over that time period, according to analyst estimates, which is a good look for the future of the dividend. View our latest analysis for Old National Bancorp The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was $0.44 in 2015, and the most recent fiscal year payment was $0.56. This implies that the company grew its distributions at a yearly rate of about 2.4% over that duration. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, Old National Bancorp has only grown its earnings per share at 4.2% per annum over the past five years. While growth may be thin on the ground, Old National Bancorp could always pay out a higher proportion of earnings to increase shareholder returns. An additional note is that the company has been raising capital by issuing stock equal to 16% of shares outstanding in the last 12 months. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. 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. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for Old National Bancorp that investors should know about before committing capital to this stock. 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
18-05-2025
- Business
- Yahoo
Should You Buy HNI Corporation (NYSE:HNI) For Its Upcoming Dividend?
HNI Corporation (NYSE:HNI) stock is about to trade ex-dividend in four days. Typically, the ex-dividend date is one business day before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least one business day to settle. In other words, investors can purchase HNI's shares before the 23rd of May in order to be eligible for the dividend, which will be paid on the 11th of June. The company's upcoming dividend is US$0.34 a share, following on from the last 12 months, when the company distributed a total of US$1.32 per share to shareholders. Calculating the last year's worth of payments shows that HNI has a trailing yield of 2.8% on the current share price of US$47.92. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. We've discovered 1 warning sign about HNI. View them for free. 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. Fortunately HNI's payout ratio is modest, at just 46% of profit. A useful secondary check can be to evaluate whether HNI generated enough free cash flow to afford its dividend. It distributed 34% of its free cash flow as dividends, a comfortable payout level for most companies. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. See our latest analysis for HNI Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. This is why it's a relief to see HNI earnings per share are up 2.6% per annum over the last five years. Recent earnings growth has been limited. Yet there are several ways to grow the dividend, and one of them is simply that the company may choose to pay out more of its earnings as dividends. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. HNI has delivered an average of 2.8% per year annual increase in its dividend, based on the past 10 years of dividend payments. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders. Is HNI worth buying for its dividend? Earnings per share have been growing moderately, and HNI is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. It might be nice to see earnings growing faster, but HNI is being conservative with its dividend payouts and could still perform reasonably over the long run. There's a lot to like about HNI, and we would prioritise taking a closer look at it. While it's tempting to invest in HNI for the dividends alone, you should always be mindful of the risks involved. Every company has risks, and we've spotted 1 warning sign for HNI you should know about. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are 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
11-05-2025
- Business
- Yahoo
Oshkosh Corporation (NYSE:OSK) Looks Interesting, And It's About To Pay A Dividend
Oshkosh Corporation (NYSE:OSK) is about to trade ex-dividend in the next four days. The ex-dividend date is one business day 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 of consequence because whenever a stock is bought or sold, the trade takes at least one business day to settle. Therefore, if you purchase Oshkosh's shares on or after the 16th of May, you won't be eligible to receive the dividend, when it is paid on the 30th of May. The company's next dividend payment will be US$0.51 per share, and in the last 12 months, the company paid a total of US$2.04 per share. Last year's total dividend payments show that Oshkosh has a trailing yield of 2.2% on the current share price of US$92.02. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to check whether the dividend payments are covered, and if earnings are growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Oshkosh has a low and conservative payout ratio of just 20% of its income after tax. A useful secondary check can be to evaluate whether Oshkosh generated enough free cash flow to afford its dividend. Thankfully its dividend payments took up just 42% of the free cash flow it generated, which is a comfortable payout ratio. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. See our latest analysis for Oshkosh Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. This is why it's a relief to see Oshkosh earnings per share are up 3.8% per annum over the last five years. Recent earnings growth has been limited. However, companies that see their growth slow can often choose to pay out a greater percentage of earnings to shareholders, which could see the dividend continue to rise. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Oshkosh has delivered an average of 13% per year annual increase in its dividend, based on the past 10 years of dividend payments. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. From a dividend perspective, should investors buy or avoid Oshkosh? Earnings per share growth has been growing somewhat, and Oshkosh is paying out less than half its earnings and cash flow as dividends. This is interesting for a few reasons, as it suggests management may be reinvesting heavily in the business, but it also provides room to increase the dividend in time. It might be nice to see earnings growing faster, but Oshkosh is being conservative with its dividend payouts and could still perform reasonably over the long run. Overall we think this is an attractive combination and worthy of further research. Ever wonder what the future holds for Oshkosh? See what the 14 analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow 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
11-05-2025
- Business
- Yahoo
Just Three Days Till Spectris plc (LON:SXS) Will Be Trading Ex-Dividend
Readers hoping to buy Spectris plc (LON:SXS) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Spectris investors that purchase the stock on or after the 15th of May will not receive the dividend, which will be paid on the 27th of June. The company's next dividend payment will be UK£0.566 per share. Last year, in total, the company distributed UK£0.83 to shareholders. Last year's total dividend payments show that Spectris has a trailing yield of 4.0% on the current share price of UK£20.92. If you buy this business for its dividend, you should have an idea of whether Spectris's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing. We've discovered 3 warning signs about Spectris. View them for free. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Fortunately Spectris's payout ratio is modest, at just 36% of profit. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Spectris paid out more free cash flow than it generated - 194%, to be precise - last year, which we think is concerningly high. We're curious about why the company paid out more cash than it generated last year, since this can be one of the early signs that a dividend may be unsustainable. Spectris paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough cash to cover the dividend. Cash is king, as they say, and were Spectris to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign. Check out our latest analysis for Spectris Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're encouraged by the steady growth at Spectris, with earnings per share up 3.1% on average over the last five years. Earnings have been growing somewhat, but we're concerned dividend payments consumed most of the company's cash flow over the past year. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Spectris has delivered 6.6% dividend growth per year on average over the past 10 years. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders. Is Spectris an attractive dividend stock, or better left on the shelf? Spectris delivered reasonable earnings per share growth in recent times, and paid out less than half its profits and 194% of its cash flow over the last year, which is a mediocre outcome. Overall, it's hard to get excited about Spectris from a dividend perspective. With that being said, if dividends aren't your biggest concern with Spectris, you should know about the other risks facing this business. For example, we've found 3 warning signs for Spectris (1 makes us a bit uncomfortable!) that deserve your attention before investing in the shares. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are 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. 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
