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Atlas Copco (STO:ATCO A) Is Due To Pay A Dividend Of SEK1.40

Investors of Atlas Copco AB (STO:ATCO A) are set to receive a payment of SEK1.40 per share on October 24th. While this increase in dividend yield of 1.4% may seem modest, it is still a positive boost for shareholders.

When considering a company’s dividend, it is important to assess if the current payout levels are sustainable. Atlas Copco has been comfortably earning enough to cover its dividend payments, with a large portion of its earnings being reinvested into growing the business. Looking ahead, earnings per share are expected to increase by 25.9% in the next year, potentially leading to a sustainable payout ratio of 40%.

Atlas Copco has a solid track record of consistently paying dividends, with a yearly growth rate of about 7.4% from 2014 to the most recent annual payment of SEK2.80. This consistent growth in distributions reflects positively on the company’s long-term value.

Investors may be attracted to Atlas Copco’s stock based on its history of growing earnings per share at a rate of 12% annually over the past five years. With a balanced payout policy and steady earnings growth, the company appears well-positioned to continue increasing dividends in the future.

Overall, Atlas Copco’s dividend increase, track record, and growing earnings make it a strong income stock. With distributions comfortably covered by earnings and a focus on converting earnings to cash flows, the company shows potential as a reliable dividend stock. While dividend payments are important, investors should also consider other factors when analyzing a company, such as earnings growth and overall financial health.

For those interested in a more in-depth analysis of Atlas Copco, there are resources available to assess the company’s valuation, potential risks, dividends, insider transactions, and financial health. It is important to conduct thorough research and consider various factors before making investment decisions.

Please note that the information provided in this article by Simply Wall St is based on historical data and analyst forecasts and is not intended to be financial advice. It is recommended to conduct further research and consult with financial professionals before making investment decisions.

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