Züblin Immobilien Holding (VTX:ZUBN) Will Pay A Dividend Of CHF1.00

Züblin Immobilien Holding AG (VTX:ZUBN) will pay a dividend of CHF1.00 on the 2nd of July. Including this payment, the dividend yield on the stock will be 2.6%, which is a modest boost for shareholders' returns.

We've discovered 3 warning signs about Züblin Immobilien Holding. View them for free.

Züblin Immobilien Holding's Payment Could Potentially Have Solid Earnings Coverage

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Before making this announcement, Züblin Immobilien Holding's dividend was higher than its profits, but the free cash flows quite comfortably covered it. Healthy cash flows are always a positive sign, especially when they quite easily cover the dividend.

If the trend of the last few years continues, EPS will grow by 13.4% over the next 12 months. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 34% which brings it into quite a comfortable range.

View our latest analysis for Züblin Immobilien Holding

Züblin Immobilien Holding Is Still Building Its Track Record

The dividend's track record has been pretty solid, but with only 7 years of history we want to see a few more years of history before making any solid conclusions. There hasn't been much of a change in the dividend over the last 7 years. Züblin Immobilien Holding hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.

Dividend Growth Could Be Constrained

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Züblin Immobilien Holding has grown earnings per share at 13% per year over the past five years. However, the payout ratio is very high, not leaving much room for growth of the dividend in the future.

In Summary

In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Züblin Immobilien Holding's payments, as there could be some issues with sustaining them into the future. The payments haven't been particularly stable and we don't see huge growth potential, but with the dividend well covered by cash flows it could prove to be reliable over the short term. We would probably look elsewhere for an income investment.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Just as an example, we've come across 3 warning signs for Züblin Immobilien Holding you should be aware of, and 1 of them is potentially serious. Is Züblin Immobilien Holding not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.