Dewhurst Group Plc’s investors are set to receive a payment of £0.05 per share on August 13th. Despite this increase, the dividend yield of 1.2% is only a modest boost to shareholder returns.
While the dividend yield is important for income investors, it is also crucial to consider any significant share price movements, as they can outweigh gains from distributions. Dewhurst Group’s stock price has risen by 38% in the last 3 months, which is positive for shareholders and may explain the decrease in the dividend yield.
Dewhurst Group’s earnings easily cover the dividend, indicating that most of the business’s earnings are being used for growth. With a potential 12.0% increase in EPS over the next year and a payout ratio estimated to be 23%, the sustainability of the dividend looks promising.
The company has a solid track record of stable dividend payments, with a compound annual growth rate of approximately 7.0% since 2014. With EPS rising at 12% per annum over the last five years, there is room for the dividend to grow further.
In summary, Dewhurst Group’s dividend increase is positive, and its sustainability is reassuring. The company’s earnings comfortably cover its dividend payments, translating into strong cash flow. While a consistent dividend policy is highly valued by the market, investors should consider various factors beyond dividend payments when analyzing a company.
If Dewhurst Group does not meet your investment criteria, consider exploring other top dividend stocks. Remember to conduct thorough research before making any investment decisions.