Thermador Groupe (EPA:THEP) Has Announced A Dividend Of €2.08

Thermador Groupe SA (EPA:THEP) has announced that it will pay a dividend of €2.08 per share on the 16th of April. This payment means the dividend yield will be 3.1%, which is below the average for the industry.

See our latest analysis for Thermador Groupe

Thermador Groupe's Payment Could Potentially Have Solid Earnings Coverage

Even a low dividend yield can be attractive if it is sustained for years on end. However, Thermador Groupe's earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share is forecast to rise by 2.0% over the next year. If the dividend continues on this path, the payout ratio could be 39% by next year, which we think can be pretty sustainable going forward.

Thermador Groupe Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2015, the dividend has gone from €1.58 total annually to €2.08. This means that it has been growing its distributions at 2.8% per annum over that time. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.

The Dividend Has Growth Potential

Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Thermador Groupe has been growing its earnings per share at 9.7% a year over the past five years. Thermador Groupe definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Thermador Groupe Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Thermador Groupe might even raise payments in the future. 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. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for Thermador Groupe that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.