Progress Software Corporation’s (NASDAQ:PRGS) investors will receive a payment of $0.175 per share on September 16th, resulting in a dividend yield of 1.3%. This payment is expected to boost shareholder returns.
Progress Software’s earnings easily cover the distributions, indicating that the company is comfortably earning enough to cover the dividend. The next year is projected to see EPS growth of 77.6%, with a estimated payout ratio of 25%, which is within a sustainable range for the dividend.
While Progress Software has been paying a consistent dividend for some time, it is still building its track record. The annual payment has shown a compound annual growth rate of approximately 4.3% over the last 8 years. EPS has been rising for the last five years at a rate of 13% per annum, making it an appealing investment for shareholders.
Overall, Progress Software looks like a great dividend stock, with earnings easily covering distributions and the company generating plenty of cash. This makes it a solid potential as a dividend stock. Investors looking for stable dividend policies may find Progress Software attractive.
It is important to note that while dividend payments are significant, they are not the only factor to consider when evaluating a company. Investors should also take into account other aspects of the company’s financial health.