Stock Dividend – Business Continuity And Disaster Recovery World http://business-continuity-and-disaster-recovery-world.co.uk/ Fri, 04 Jun 2021 13:25:26 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://business-continuity-and-disaster-recovery-world.co.uk/wp-content/uploads/2021/05/cropped-icon-32x32.png Stock Dividend – Business Continuity And Disaster Recovery World http://business-continuity-and-disaster-recovery-world.co.uk/ 32 32 CSX announces stock split https://business-continuity-and-disaster-recovery-world.co.uk/csx-announces-stock-split/ https://business-continuity-and-disaster-recovery-world.co.uk/csx-announces-stock-split/#respond Fri, 04 Jun 2021 12:45:00 +0000 https://business-continuity-and-disaster-recovery-world.co.uk/csx-announces-stock-split/

JACKSONVILLE, Fla., June 04, 2021 (GLOBE NEWSWIRE) – CSX Corporation (NASDAQ: CSX) today announced that its board of directors has approved a 3-for-1 stock split to be distributed to shareholders as a dividend in actions. Each shareholder of record at the close of business on June 18, 2021 will receive two additional common shares of CSX for each share held on that date of listing. The new shares will be distributed on June 28, 2021.

The regular quarterly cash dividend of $ 0.28 per share payable on June 15, 2021 will not be affected by the stock split. Based on the current dividend rate, the post-split quarterly dividend on the company’s common stock would be $ 0.093 * per share.

*On a post-split basis, the dividend will be calculated to six decimal places to get as close as possible to the current dividend amount.

About CSX and its disclosures

CSX, based in Jacksonville, Florida, is a leading transportation company. It provides rail, intermodal and rail-to-truck transshipment services and solutions to customers in a wide range of markets, including energy, industrial, construction, agricultural and consumer products. For nearly 200 years, CSX has played a vital role in the country’s economic expansion and industrial development. Its network connects all of the major metropolitan areas in the eastern United States, where nearly two-thirds of the country’s population reside. It also connects more than 230 local railways and more than 70 sea, river and lake ports with major population centers and agricultural towns.

This announcement, along with additional financial information, is available on the Company’s website at http://investors.csx.com. CSX also uses social media channels to communicate company information. While social media channels are not intended to be the primary method of disclosing material information, it is possible that certain information published by CSX on social media may be considered material. Therefore, we encourage investors, the media and others interested in the business to review the information we post on Twitter (http://twitter.com/CSX) and on Facebook (http://www.facebook.com/OfficialCSX). The social media channels used by CSX may be updated from time to time. Further information on CSX Corporation and its subsidiaries is available at www.csx.com.

Contact:
Bill Slater, Investor Relations
904-359-1334

Bryan Tucker, Corporate Communications
855-955-6397




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The best Canadian dividend-paying stocks to own right now https://business-continuity-and-disaster-recovery-world.co.uk/the-best-canadian-dividend-paying-stocks-to-own-right-now/ https://business-continuity-and-disaster-recovery-world.co.uk/the-best-canadian-dividend-paying-stocks-to-own-right-now/#respond Thu, 03 Jun 2021 19:02:45 +0000 https://business-continuity-and-disaster-recovery-world.co.uk/the-best-canadian-dividend-paying-stocks-to-own-right-now/

The Tax Free Savings Account (TFSA) is an extremely useful investment tool for Canadian investors. TFSA users can enjoy significant tax savings over the years, as the account type allows their capital gains, dividends, and other income from account assets to accumulate without incurring tax.

You can use your TFSA contribution room to hold a wide variety of assets. Reliable income-generating assets like dividend-paying stocks are great additions to TFSA portfolios. Today, I’m going to discuss a great Canadian dividend-paying stock that you could hold in your TFSA for non-standard and long-term returns.

Brookfield Infrastructures Partners

Brookfield Infrastructures Partners (TSX: BIP.UN) (NYSE: BIP) might be an ideal stock if you are looking for a company that has the qualities necessary for meaningful, reliable long-term growth while delivering dividends.

Brookfield Infrastructure Partners has a wide range of infrastructure assets in its portfolio that are diversified across several industries, including transportation, utilities, intermediary and data infrastructure assets. The company has low maintenance capital requirements. Its maintenance expenses have averaged less than 20% of its operating funds over the past five years. Last year, its maintenance capital expenditure was only 19.3%.

The assets of Brookfield Infrastructure will continue to be critical to many sectors of the economy. With 95% of its cash flow coming from regulated or contracted assets, it generates reliable cash flows. 65% of its cash flow carries no volume risk and approximately 75% is indexed to inflation. This means the company is generating significant cash flow to comfortably support its dividend payments.

Promising growth prospects

Brookfield Infrastructure Partners can hardly ever be short of growth opportunities. The company spans five continents and has many opportunities to generate high returns over the long term after adjusting for risks. The company also has significant mature assets to generate profit in the form of capital that it can use to make further investments.

The company started to privatize Inter-pipeline in the first quarter of fiscal 2021 – a company in which it had already established a one-fifth stake during the pandemic-fueled market crash last year.

Brookfield Infrastructure Partners has closed or secured three asset sales totaling over US $ 1.7 billion, generating 34% annual after-tax returns and quadrupling its return on investment. The company ended its final quarter with US $ 2.6 billion in liquid assets that it can use for other investments.

Stupid takeaways

The management of Brookfield Infrastructure Partners has always been successful in appealing to investors by achieving their goal of 12-15% total long-term return on investment. Investors may simply consider buying the stock at a reasonable valuation to take advantage of the 12% compound annual growth rate that seems virtually guaranteed due to its excellent track record.

The stock is trading at $ 65.31 per share at the time of writing, and it has a 12-month dividend yield of 3.87%. The company’s cash distribution grows by almost 5-9% per share each year, making it an excellent stock of dividends for wealth growth through capital gains and dividend income in your business. TFSA wallet.

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Foolish contributor Adam othman has no position in any of the stocks mentioned. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS and Brookfield Infrastructure Partners.


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China Merchants Port Holdings Company Limited (HKG: 144) Shares Go Ex-Dividend In Just Four Days https://business-continuity-and-disaster-recovery-world.co.uk/china-merchants-port-holdings-company-limited-hkg-144-shares-go-ex-dividend-in-just-four-days/ https://business-continuity-and-disaster-recovery-world.co.uk/china-merchants-port-holdings-company-limited-hkg-144-shares-go-ex-dividend-in-just-four-days/#respond Thu, 03 Jun 2021 01:35:48 +0000 https://business-continuity-and-disaster-recovery-world.co.uk/china-merchants-port-holdings-company-limited-hkg-144-shares-go-ex-dividend-in-just-four-days/

It looks like China Merchants Port Holdings Company Limited (HKG: 144) is set to be ex-dividend within the next 4 days. Typically, the ex-dividend date is one business day prior to the record date which is the date a company determines which shareholders are eligible to receive a dividend. The ex-dividend date is an important date to know, as any purchase of shares made after this date may mean a late settlement which does not appear on the registration date. In other words, investors can buy shares of China Merchants Port Holdings before June 8 in order to be eligible for the dividend, which will be paid on July 16.

The company’s next dividend payment will be HK $ 0.51 per share, compared to last year when the company paid a total of HK $ 0.69 to shareholders. Based on last year’s payouts, China Merchants Port Holdings has a rolling 5.5% return on the current share price of HK $ 12.66. Dividends are a major contributor to returns on investment for long-term holders, but only if the dividend continues to be paid. That is why we should always check whether dividend payments seem sustainable and whether the business is growing.

See our latest analysis for China Merchants Port Holdings

Dividends are usually paid out of business income, so if a business pays more than it earned, its dividend is usually at risk of being reduced. Fortunately, China Merchants Port Holdings’ payout ratio is modest, at just 47% of earnings. Yet cash flow is usually more important than earnings in assessing dividend sustainability, so we always need to check whether the company has generated enough cash to pay its dividend. It paid 18% of its free cash flow as dividends last year, which is cautiously low.

It is encouraging to see that the dividend is covered by both earnings and cash flow. This usually suggests that the dividend is sustainable, as long as profits don’t drop sharply.

Click here to view the company’s payout ratio, as well as analysts’ estimates of its future dividends.

SEHK: 144 Historic dividend June 3, 2021

Have profits and dividends increased?

Stocks with stable earnings can still be attractive dividend payers, but it’s important to be more careful in your approach and demand a greater margin of safety when it comes to dividend sustainability. If profits fall and the company is forced to cut its dividend, investors could see the value of their investment go up in smoke. This explains why we are not too excited about the stable earnings of China Merchants Port Holdings over the past five years. Better than seeing them fall off a cliff, of course, but the best dividend-paying stocks increase their earnings significantly over the long term.

China Merchants Port Holdings has also issued more than 5% of its market cap in new stocks over the past year, which we believe may hurt its long-term dividend outlook. Trying to raise the dividend while issuing large amounts of new stock reminds us of the ancient Greek tale of Sisyphus – perpetually pushing a rock upward.

Another key way to measure a company’s dividend outlook is to measure its historical rate of dividend growth. China Merchants Port Holdings has seen its dividend fall by 3.9% per year on average over the past 10 years, which is not great to see.

The bottom line

Should investors buy China Merchants Port Holdings for the next dividend? While it’s not great to see that earnings per share are indeed stable over the 10-year period we’ve checked, at least the payout ratios are low and conservative. To sum up, China Merchants Port Holdings looks good in this analysis, although it doesn’t look like a great opportunity.

On that note, you’ll want to research the risks China Merchants Port Holdings faces. For example – China Merchants Port Holdings has 4 warning signs we think you should be aware.

If you are in the dividend-paying stock market, we recommend that you check out our list of the highest dividend-paying stocks with a yield above 2% and a future dividend.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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3 dividend stocks I would buy in June https://business-continuity-and-disaster-recovery-world.co.uk/3-dividend-stocks-i-would-buy-in-june/ https://business-continuity-and-disaster-recovery-world.co.uk/3-dividend-stocks-i-would-buy-in-june/#respond Wed, 02 Jun 2021 08:02:52 +0000 https://business-continuity-and-disaster-recovery-world.co.uk/3-dividend-stocks-i-would-buy-in-june/

There appears to be light at the end of the Covid tunnel as the vaccine rollout continues to yield results. So I look at stocks which I think have long term resilience. Here are three dividend-paying stocks that I like the look of today in the tech, insurance, and ventilation markets.

Kainos grows thanks to mergers and acquisitions

Software company Kainos Group (LSE: KNOS) is expanding its reach across Europe. And he just announced the acquisition of the Workday division of Cloudator Oy.

Workday is a US publisher of on-demand financial management software and Kainos is already a major partner in the Workday service offering. In his recent annual report, he noted an 18% increase in organic sales for his Workday division, so I think expanding that seems like a wise move.

Kainos’ annual results have been excellent, with a 31% increase in revenue and 117% increase in profit before tax.

He also has the NHS as a client, which has significantly increased his income over the past year. It has a forward price-to-earnings (P / E) ratio of 38, earnings per share of 32p and its market capitalization is £ 1.7 billion. It also offers a 2% dividend yield.

Still, Kainos has been a popular stock this year and could risk a drop in its share price if its growth slows. Nonetheless, I like the look of this dividend paying stock.

LGEN’s generous dividend

Legal and General Group (LSE: LGEN) is a large insurance company with multiple sources of income from insurance, investments, retirement and life coverage. One of its flows is from rental and leasehold properties for the elderly and, as the UK has an aging population, this is likely to have increasing appeal. I think it should continue to record strong cash flows in the years to come.

LGEN’s record is stronger now than it was before the pandemic. It is expanding its product offering to the United States and Europe, where it is seeing strong demand for its exchange-traded funds (ETFs).

But there are ongoing risks to this business and they include another wave of Covid-19 or a financial crisis.

Legal & General has a forward P / E of 9 and earnings per share of 29p, in addition to offering a generous dividend yield of 6%. This return is very attractive to me and I am tempted to add it to my ISA Stocks and Shares.

A breath of fresh air

Volition Group (LSE: FAN) sells ventilation products to homes and businesses, including extractor fans and integrated ventilation systems.

The pandemic has highlighted the need for ventilation and it is increasingly in demand as consumers seek to control indoor air. The company’s operating margins are 20% and they have increased thanks to mergers and acquisitions in recent years.

It is also considered a viable entrant in the FTSE 250 in the next shuffle.

The Volution share price has increased 163% over the past five years. In the year leading up to the pandemic, the group’s share price performed well, but since the March 2020 stock market crash it has skyrocketed.

Today, Volution has a P / E of 48, earnings per share is 9p, and its dividend yield is 1%. But given that this is an expensive stock, there is always a risk of falling prices on disappointing results. Still, I like its outlook for the future and would gladly buy Volution Group shares today.

The post-dividend stocks I would buy in June appeared first on The Motley Fool UK.

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Kirsteen has no position in any of the stocks mentioned. The Motley Fool UK recommended Kainos. The opinions expressed on the companies mentioned in this article are those of the author and therefore may differ from the official recommendations that we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a wide range of ideas makes we are better investors.

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2 top UK dividend yielding stocks I would buy today https://business-continuity-and-disaster-recovery-world.co.uk/2-top-uk-dividend-yielding-stocks-i-would-buy-today/ https://business-continuity-and-disaster-recovery-world.co.uk/2-top-uk-dividend-yielding-stocks-i-would-buy-today/#respond Tue, 01 Jun 2021 15:29:28 +0000 https://business-continuity-and-disaster-recovery-world.co.uk/2-top-uk-dividend-yielding-stocks-i-would-buy-today/

After last year’s dividend cuts and suspensions, I was surprised at how generously leading UK dividend income stocks are paying shareholders today. Last week I suggested nine that are worth exploring. Here are two more of my FTSE 100 income favorites.

Insurer and asset manager Legal and General Group (LSE: LGEN) is probably my first UK dividend income security. To its credit, L&G continued to reward its loyal shareholders throughout the pandemic, even when its rival Aviva gave in to the pressure and cut its dividend.

Today, L&G is offering a forward yield of 6.5%. With the average savings account paying 0.06%, that’s a huge return. Of course, as with all dividends, there are no guarantees. However, the payout is covered 1.7 times by the revenue forecast, which boosts my confidence.

I would buy these two FTSE 100 shares

Legal & General did not survive the pandemic completely unscathed. In March, it reported a 3% drop in annual operating profits to £ 2.21bn, as it set aside an additional £ 110m to cover claims caused by mutant strains of Covid. Still, its fund management arm performed well, with assets under management increasing 6.9% to £ 1.3bn. Better yet, the underlying business remains strong, with capital levels climbing to 192%. This could free up funds to invest in faster growth opportunities.

As well as being one of the UK’s leading dividend income stocks, the Legal & General share price also generated growth. It is up 36% from last year, although the five-year growth is actually less than 20%. For me, L&G is primarily about revenue, and on that front it is performing well.

I stay with the insurance industry for my next choice, Holdings of the Phoenix group (LSE: PHNX). It also deserves the title of Britain’s premier dividend-income stock for maintaining payouts despite the woes of the past year. Today it is down 6.6%, although the cover is slightly thinner at 1.3 times earnings.

I would also buy this leading UK dividend income stock

Phoenix is ​​a different creature from L&G. Its strategy is to buy out old life insurance and pension funds closed to new business and manage them on behalf of members. The more he buys, the greater the economies of scale. It now serves 14 million policyholders.

The Phoenix share price is never going to turn off the lights. Income is the draw here, as the stock price has only climbed 15% measured over one and five years. Management knows this and has kept investors loyal by taking advantage of record cash flow of £ 1.7bn to increase their annual payout by 3%.

The challenge is that Phoenix must continue to buy life pension and legacy life insurance funds in order to continue to grow and fund these dividends. I am therefore delighted to note that it also has an “ open ” activity offering retirement and investment products to new clients, as part of the Standard Life Mark. In 2016, it acquired SunLife from Axa. This diversification should help it remain one of the UK’s leading dividend-income stocks over the long term.

The post 2 dividend income UK stocks that I would buy today appeared first on The Motley Fool UK.

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Harvey jones has no position in any of the stocks mentioned. The Motley Fool UK does not have a position in any of the stocks mentioned. The opinions expressed on the companies mentioned in this article are those of the author and therefore may differ from the official recommendations that we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a wide range of ideas makes we are better investors.

Motley Fool United Kingdom 2021


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Universal’s upcoming dividend (NYSE: UVV) will be higher than last year https://business-continuity-and-disaster-recovery-world.co.uk/universals-upcoming-dividend-nyse-uvv-will-be-higher-than-last-year/ https://business-continuity-and-disaster-recovery-world.co.uk/universals-upcoming-dividend-nyse-uvv-will-be-higher-than-last-year/#respond Mon, 31 May 2021 11:10:48 +0000 https://business-continuity-and-disaster-recovery-world.co.uk/universals-upcoming-dividend-nyse-uvv-will-be-higher-than-last-year/

Universal Corporation (NYSE: UVV) The dividend will increase to US $ 0.78 on August 2. Based on the announced payment, the dividend yield for the company will be 5.5%, which is quite typical for the industry.

Check out our latest analysis for Universal

Universal does not earn enough to cover its payments

Unless the payments are sustainable, the dividend yield doesn’t mean too much. The last payment was 87% of the profits, but the cash flow was much higher. Since the dividend only pays money to shareholders, we are more concerned with the cash payout ratio from which we can see that there is a lot left to reinvest in the company.

Going forward, EPS could drop 3.1% if the company can’t turn the tide in recent years. If the dividend continues on its recent path, the payout ratio 12 months from now could be 97%, which is certainly a bit high to be sustainable going forward.

NYSE: Historic UVV Dividend May 31, 2021

Universal has a strong track record

The company has a long history of paying dividends with very little fluctuation. As of 2011, the first annual payment was $ 1.88, compared to the most recent payment for a full year of $ 3.12. This means that he increased his distributions by 5.2% per year during this period. Dividends have grown at a reasonable rate over this time period, and without any major payout cuts over time, we think this is an attractive combination as it provides a good boost to returns for shareholders.

Dividend growth is questionable

Investors might be attracted to the stock depending on the quality of its payment history. However, initial appearances can be deceptive. Over the past five years, it appears that Universal’s EPS has fallen by about 3.1% per year. Falling profits will inevitably lead the company to pay a lower dividend based on falling profits.

Our thoughts on the Universal dividend

Overall, it’s probably not a great income value, although the dividend is increased at the moment. In the past, payments have been volatile, but in the short term the dividend could be reliable as the business generates enough cash. We would probably look elsewhere for an income investment.

Investors generally tend to favor companies with a consistent and stable dividend policy over those with an irregular policy. Meanwhile, despite the importance of dividend payments, these aren’t the only factors our readers should be aware of when evaluating a business. As an example, we have identified 1 warning sign for Universal which you should be aware of before investing. If you are a dividend investor, you can also view our organized list of high performing dividend stocks.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
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Should you invest in stocks with high dividends? https://business-continuity-and-disaster-recovery-world.co.uk/should-you-invest-in-stocks-with-high-dividends/ https://business-continuity-and-disaster-recovery-world.co.uk/should-you-invest-in-stocks-with-high-dividends/#respond Sun, 30 May 2021 17:15:30 +0000 https://business-continuity-and-disaster-recovery-world.co.uk/should-you-invest-in-stocks-with-high-dividends/

The recent announcement of a dividend of 58 per share at Bharat Petroleum Corp. Ltd, a divestment candidate for the Center, has excited the stock market. But investors who are excited about high dividends should consider a multitude of parameters. Mint brings you ups and downs.

How do you know if the dividend is high?

Investors typically compare the dividend to the stock price. The dividend per share divided by the price per share gives you the dividend yield of a company. The dividend yield gives you a rough idea of ​​the income stream you will get from investing in the stock (if the dividend is maintained in the years to come) and investors often compare it to other income streams such as the rent or interest. Note that dividends are declared at the discretion of the company and that there is no contractual obligation behind them like rent or interest. Sometimes the dividend yield is high because the market anticipates declining earnings and has built it into the stock price.

What does a high dividend yield mean?

Investing in high dividend yielding stocks is popular, especially among “value investors”. A high dividend yield can mean that the stock is undervalued and investors can receive regular income even without the stock appreciating. In fact, there is a whole sub-category of mutual funds called dividend yield funds. However, there are caveats. Firms that pay high dividends generally tend to be mature players in their industries, with little other means of investing cash. High dividends may indicate a lack of room or ideas for expansion.

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No guarantee of high returns

What is the tax situation on dividends?

Historically, dividend tax was paid by companies through the dividend distribution tax (DDT). This was abolished in the 2020-2021 Union budget. From FY21, investors had to pay dividend tax according to their tranche rate. Thus, a dividend yield of 10% translates into an after-tax yield of 6.88% for a person in the 30% tax bracket (including cessation).

Is there a tax-efficient way to invest?

Yes, investing in such businesses through mutual funds offers a distinct tax advantage. Mutual funds are structured like trusts and pay no tax on the dividends they receive. This dividend is added to the net asset value (NAV) of the fund. Dividend yield funds focus on buying high dividend yielding stocks. If you opt for the mutual fund growth plan, you do not have to pay tax on this growth in net asset value until you have actually redeemed your investments in the fund.

What About Mutual Fund Dividends?

Dividends declared by mutual funds are very different from those declared by companies. The former may involve repayment of your invested capital as well as profits and the Securities and Exchange Board of India has ordered fund companies to call them “income distribution with capital withdrawals” from April 1, 2021. fixed rate, which makes them tax inefficient for high incomes. And you can’t predict when the fund will declare these dividends.

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Angang Steel (HKG: 347) increases dividend to HK $ 0.10 https://business-continuity-and-disaster-recovery-world.co.uk/angang-steel-hkg-347-increases-dividend-to-hk-0-10/ https://business-continuity-and-disaster-recovery-world.co.uk/angang-steel-hkg-347-increases-dividend-to-hk-0-10/#respond Sun, 30 May 2021 01:27:33 +0000 https://business-continuity-and-disaster-recovery-world.co.uk/angang-steel-hkg-347-increases-dividend-to-hk-0-10/

Angang Steel Company Limited’s (HKG: 347) the dividend will increase to HK $ 0.10 on June 30. Based on the announced payment, the dividend yield for the company will be 2.0%, which is fairly typical for the industry.

While the dividend yield is important for income investors, it is also important to consider any significant change in the price of the shares, as it will generally outweigh any gains from distributions. Investors will be happy to see that Angang Steel’s share price has risen 41% in the past 3 months, which is good for shareholders and may also explain a drop in dividend yield.

Check out our latest analysis for Angang Steel

Angang Steel’s income easily covers distributions

Strong dividend yields are great, but they only really help us if the payout is sustainable. However, prior to this announcement, Angang Steel’s dividend was comfortably covered by cash flow and earnings. This means that most of its profits are kept to grow the business.

Next year is expected to see EPS increase by 84.5%. If the dividend continues according to recent trends, we estimate that the payout ratio will be 18%, which is within the range that makes us comfortable with the sustainability of the dividend.

SEHK: 347 Historical Dividend May 30, 2021

Dividend volatility

The company’s dividend history has been marked by instability, with at least one cut in the past 10 years. The dividend went from CNY 0.12 in 2011 to the last annual payment of CNY 0.084. If you do the math, that’s about a 3.1% drop per year. A business that decreases its dividend over time is usually not what we are looking for.

The dividend is expected to increase

Growth in earnings per share could be a mitigating factor considering past dividend fluctuations. Angang Steel has seen BPA increase over the past five years, at 16% per year. With decent growth and a low payout rate, we think this bodes well for Angang Steel’s prospects of increasing its dividend payouts going forward.

Angang Steel looks like a big dividend

Overall, a rise in dividends is always good, and we think Angang Steel is a solid income stock thanks to its track record and growing earnings. Profits easily cover distributions and the company generates a lot of cash. All of these factors taken into account, we believe this has strong potential as a dividend-paying stock.

Market movements attest to the high value of a coherent dividend policy compared to a more unpredictable policy. However, there are other things for investors to consider when analyzing the performance of stocks. Taking the debate a little further, we have identified 2 warning signs for Angang Steel that investors need to be aware of moving forward. If you are a dividend investor, you can also view our organized list of high performing dividend stocks.

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Character Group (LON: CCT) shareholders to receive larger dividend than last year https://business-continuity-and-disaster-recovery-world.co.uk/character-group-lon-cct-shareholders-to-receive-larger-dividend-than-last-year/ https://business-continuity-and-disaster-recovery-world.co.uk/character-group-lon-cct-shareholders-to-receive-larger-dividend-than-last-year/#respond Sat, 29 May 2021 07:32:32 +0000 https://business-continuity-and-disaster-recovery-world.co.uk/character-group-lon-cct-shareholders-to-receive-larger-dividend-than-last-year/

The Character Group plc (LON: CCT) has announced that it will increase its dividend on July 30 to UK £ 0.06. This brings the annual payout to 1.4% of the current share price, which is sadly less than what the industry is paying.

While the dividend yield is important for income investors, it is also important to consider any significant change in the price of the shares, as it will generally outweigh any gains from distributions. Investors will be happy to see that Character Group’s share price has risen 44% in the past 3 months, which is good for shareholders and may also explain a drop in dividend yield.

Check out our latest analysis for Character Group

Character Group earnings easily cover distributions

It would be nice if the yield was higher, but we should also check whether higher levels of dividend payouts would be viable. Before making this announcement, Character Group was easily earning enough to cover the dividend. This means that most of its profits are kept to grow the business.

Going forward, earnings per share are expected to increase by 39.7% over the next year. If the dividend continues on that path, the payout ratio could be 20% by next year, which we believe can be quite sustainable going forward.

OBJECTIVE: Historic dividend CCT May 29, 2021

Dividend volatility

Although the company has a long history of dividends, it has been cut at least once in the past 10 years. Since 2011, the dividend has increased from UK £ 0.04 to UK £ 0.09. This works out to a compound annual growth rate (CAGR) of around 8.4% per year during that time. We like to see dividends growing at a reasonable rate, but with at least a substantial reduction in payouts, we’re not sure this dividend would be ideal for someone who intends to live off that income.

Dividend growth is questionable

With a relatively volatile dividend, it is even more important to assess whether earnings per share are increasing, which could indicate a growing dividend in the future. Character Group has seen its earnings per share drop 5.3% per year over the past five years. If the company earns less over time, it naturally follows that it will also have to pay less dividends. Profits are expected to rise over the next year, but we will remain cautious until a track record of earnings growth is established.

Our thoughts on the Character Group dividend

Overall, we still like to see the dividend go up, but we don’t think Character Group will make a good income. The company generates a lot of cash which could keep the dividend going for a while, but the track record is not great. We would be a little cautious to rely on this stock primarily for dividend income.

Investors generally tend to favor companies with a consistent and stable dividend policy over those with an irregular policy. However, there are other things for investors to consider when analyzing the performance of stocks. As an example, we have identified 3 warning signs for the group of characters which you should be aware of before investing. Looking for more high yield dividend ideas? Try our organized list of good dividend payers.

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Should you buy Arvida Group Limited (NZSE: ARV) for its next dividend? https://business-continuity-and-disaster-recovery-world.co.uk/should-you-buy-arvida-group-limited-nzse-arv-for-its-next-dividend/ https://business-continuity-and-disaster-recovery-world.co.uk/should-you-buy-arvida-group-limited-nzse-arv-for-its-next-dividend/#respond Fri, 28 May 2021 18:04:48 +0000 https://business-continuity-and-disaster-recovery-world.co.uk/should-you-buy-arvida-group-limited-nzse-arv-for-its-next-dividend/

Readers wishing to buy Arvida Group Limited (NZSE: ARV) for its dividend will have to act shortly, as the stock is about to trade ex-dividend. The ex-dividend date is a business day before a company’s registration date, which is the date the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important because the settlement process involves two full business days. So if you miss this date, you would not appear on the company’s books on the date of registration. Thus, you can buy Arvida Group shares before June 1 in order to receive the dividend, which the company will pay on June 10.

The company’s upcoming dividend is NZ $ 0.015 per share, after the past 12 months, when the company has distributed a total of NZ $ 0.053 per share to shareholders. Based on the value of last year’s payouts, Arvida Group has an ending yield of 2.9% on the current share price of NZ $ 1.83. Dividends are an important source of income for many shareholders, but the health of the company is crucial to sustaining these dividends. As a result, readers should always check whether Arvida Group has been able to increase its dividends, or if the dividend could be reduced.

See our latest analysis for the Arvida group

Dividends are usually paid out of company profits, so if a company pays more than it earned, its dividend is usually more at risk of being reduced. The Arvida Group pays only 22% of its after-tax profit, which is comfortably low and leaves a lot of leeway in the event of adverse events. Yet cash flow is still more important than earnings in valuing a dividend, so we need to see if the company has generated enough cash to pay for its distribution. The good thing is that dividends were well covered by free cash flow, with the company paying 25% of its cash flow last year.

It is positive to see that the Arvida Group dividend is covered by both earnings and cash flow, as this is usually a sign that the dividend is sustainable, and a lower payout ratio usually suggests a higher. large safety margin before the dividend is reduced.

Click here to view the company’s payout ratio, as well as analysts’ estimates of its future dividends.

NZSE: Historic ARV dividend May 28, 2021

Have profits and dividends increased?

Companies with steadily increasing earnings per share are generally the best dividend-paying stocks because they generally find it easier to increase dividends per share. If business slows down and the dividend is reduced, the company could see its value drop precipitously. That’s why it’s heartwarming to see Arvida Group profits soar, up 21% per year over the past five years. Arvida group earnings per share grew like the Road Runner on a day of athletics; hardly stop even for a cheeky “beep-beep”. We also like the fact that it reinvests most of its profits in its operations. ”

Another key way to measure a company’s dividend outlook is to measure its historical rate of dividend growth. Over the past six years, the Arvida Group has increased its dividend by around 32% per year on average. It’s great to see earnings per share grow rapidly over several years and dividends per share grow at the same time.

The bottom line

Is Arvida Group an attractive dividend stock, or is it better to stay on the shelf? We like the fact that Arvida Group is increasing its earnings per share while simultaneously paying a small percentage of its earnings and cash flow. These characteristics suggest that the company is reinvesting in growing its business, while the prudent payout ratio also implies a reduced risk of dividend reduction in the future. It is a promising combination that should mark this company worthy of special attention.

On that note, you’ll want to research the risks that the Arvida Group faces. We have identified 4 warning signs with Arvida Group (at least 2 not to be ignored), and understanding them should be part of your investment process.

If you are looking for dividend paying stocks, we recommend that you take a look at our list of top dividend paying stocks with a yield above 2% and a future dividend.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Annual Online Review 2020

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