M Winkworth PLC’s investors will receive a payment of £0.03 per share on 14th of August, resulting in a dividend yield of 6.0%, which is above the industry average. Before this announcement, the company was paying out a large proportion of both earnings and cash flow, with the dividend being 135% of cash flows. However, with expected EPS growth of 39.0% next year, the payout ratio is estimated to be 72%, making the dividend more sustainable.
Although M Winkworth has a long dividend history, it has been cut at least once in the last 10 years. Despite the dividend growing at a rate of 8.3% annually since 2014, the track record is not great. The company has been growing its earnings per share at 7.2% a year over the past five years, but the high payout ratio may slow down future growth.
Overall, M Winkworth may not be a great dividend stock due to its unstable dividend history and high payments. Investors should consider various factors when analyzing the company, including the 3 warning signs identified for M Winkworth. Valuation analysis can help determine if the stock is potentially over or undervalued.
It’s important to note that this article provides commentary based on historical data and analyst forecasts, and is not intended to be financial advice. Investors should conduct their own research before making investment decisions.