Uponor Oyj (HEL:UPONOR) Will Pay A Larger Dividend Than Last Year At €0.34
The board of Uponor Oyj (HEL:UPONOR) has announced that it will be increasing its dividend on the 22nd of September to €0.34. This makes the dividend yield 4.1%, which is above the industry average.
Check out our latest analysis for Uponor Oyj
Uponor Oyj's Earnings Easily Cover the Distributions
A big dividend yield for a few years doesn't mean much if it can't be sustained. The last dividend was quite easily covered by Uponor Oyj's earnings. This indicates that quite a large proportion of earnings is being invested back into the business.
Looking forward, earnings per share is forecast to rise by 13.4% over the next year. If the dividend continues on this path, the payout ratio could be 47% by next year, which we think can be pretty sustainable going forward.
Uponor Oyj Has A Solid Track Record
The company has an extended history of paying stable dividends. Since 2012, the dividend has gone from €0.35 to €0.67. This means that it has been growing its distributions at 6.7% per annum over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.
The Dividend Looks Likely To Grow
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Uponor Oyj has seen EPS rising for the last five years, at 18% per annum. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock.
Uponor Oyj Looks Like A Great Dividend Stock
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 1 warning sign for Uponor Oyj that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield 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.
About HLSE:UPONOR
Uponor Oyj
Uponor Oyj engages in the provision of plumbing, indoor climate, and infrastructure solutions in Europe and North America.
Flawless balance sheet with questionable track record.