Mytilineos S.A. (ATH:MYTIL) has announced an increase in its dividend payment from last year, with shareholders set to receive €1.50 on the 2nd of July. This will result in a dividend yield of 4.1%, offering a nice boost to shareholder returns.
Looking at the company’s earnings, Mytilineos is currently earning enough to cover the dividend. However, weak cash flows may pose a challenge in the future. Despite this, earnings per share are expected to rise by 24.2% over the next year, indicating a sustainable payout ratio of 34%.
Although Mytilineos’ dividend history is relatively short, the company has shown consistent growth, with the dividend increasing from €0.32 to €1.50 since 2018, representing a compound annual growth rate of approximately 29%. This growth, coupled with EPS growth of 35% per year over the past five years, suggests that the dividend is likely to continue to grow.
Overall, while the current increase in dividend payment may be appealing to some investors, it is important to note the company’s cash flow challenges. Mytilineos may not be a reliable income stock for dividend investors at this time. It is advisable to consider various factors before investing in the stock, including potential risks and warnings.
For a comprehensive analysis of Mytilineos, including fair value estimates, risks, dividends, insider transactions, and financial health, investors can refer to our detailed analysis.
Please note that this article is for informational purposes only and does not constitute financial advice. It is based on historical data and analyst forecasts, and we recommend conducting thorough research before making any investment decisions.