Quadient S.A. (EPA:QDT) has announced an increase in its dividend payment from last year, with shareholders set to receive €0.65 on the 7th of August. This will result in a dividend yield of 3.0%, which is likely to please investors.
When considering the sustainability of the dividend, it is important to look at the company’s earnings. In the case of Quadient, the earnings comfortably cover the dividend, indicating that the business is using its profits to support growth. Analysts forecast a 29.7% increase in EPS over the next year, potentially leading to a payout ratio of 16% by the following year.
Although Quadient has a history of paying dividends, it has also cut its dividend at least once in the past decade. The annual payment has decreased by 83% since 2014, which may raise concerns for some investors. Additionally, the company’s EPS has been relatively flat over the past five years, which could hinder future dividend growth.
Overall, while Quadient is currently raising its dividend, its track record and dividend trends may not make it an attractive income stock for investors focused on dividends. Companies with a stable dividend policy tend to attract more investor interest than those with inconsistent approaches. It is important for investors to consider various factors when analyzing stock performance.
If you are interested in Quadient’s valuation and potential investment opportunities, you can access a comprehensive analysis that includes fair value estimates, risks, dividends, insider transactions, and financial health. Remember that this article is general in nature and does not constitute financial advice. Make sure to conduct thorough research before making any investment decisions.