Kri-Kri Milk Industry S.A.’s (ATH:KRI) dividend will be increasing to €0.35 on 28th of August, up from last year’s payment for the same period. This will bring the dividend yield to 3.0%, which is in line with the industry average.
The earnings of Kri-Kri Milk Industry easily cover the dividend, with a large portion of earnings being reinvested back into the business. If the current trend continues, EPS is expected to grow by 24.6% over the next 12 months. The payout ratio could reach 33% by next year, which we believe is sustainable.
Although the company has a consistent dividend payment history, it has only been paying dividends for a relatively short period of time. The annual payment has grown at a rate of 22% per annum over the past 9 years.
With earnings per share growing at 25% annually over the last five years, the dividend of Kri-Kri Milk Industry looks likely to continue growing. The low payout ratio makes it an ideal candidate for future dividend increases.
In summary, the increased dividend and overall sustainability of Kri-Kri Milk Industry’s distributions are positive factors. Earnings easily cover the dividends, making it an attractive income stock. Investors looking for stable dividend stocks may find Kri-Kri Milk Industry appealing.