Oma Säästöpankki Oyj's (HEL:OMASP) Shareholders Will Receive A Bigger Dividend Than Last Year

Oma Säästöpankki Oyj's (HEL:OMASP) dividend will be increasing from last year's payment of the same period to €1.00 on 8th of April. This takes the annual payment to 3.2% of the current stock price, which unfortunately is below what the industry is paying.

Check out our latest analysis for Oma Säästöpankki Oyj

Oma Säästöpankki Oyj's Payment Expected To Have Solid Earnings Coverage

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock.

Oma Säästöpankki Oyj has a good history of paying out dividends, with its current track record at 5 years. While past records don't necessarily translate into future results, the company's payout ratio of 19% also shows that Oma Säästöpankki Oyj is able to comfortably pay dividends.

The next 3 years are set to see EPS grow by 13.2%. Analysts forecast the future payout ratio could be 33% over the same time horizon, which is a number we think the company can maintain.

Oma Säästöpankki Oyj Doesn't Have A Long Payment History

Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. Since 2019, the dividend has gone from €0.14 total annually to €0.67. This means that it has been growing its distributions at 37% per annum over that time. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Oma Säästöpankki Oyj has grown earnings per share at 34% per year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.

We Really Like Oma Säästöpankki Oyj's Dividend

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for Oma Säästöpankki Oyj that investors should know about before committing capital to this stock. Is Oma Säästöpankki Oyj 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.