Assystem (EPA:ASY) Has Announced A Dividend Of €1.00

Assystem S.A.'s (EPA:ASY) investors are due to receive a payment of €1.00 per share on 13th of July. This payment means the dividend yield will be 2.1%, which is below the average for the industry.

See our latest analysis for Assystem

Assystem's Dividend Is Well Covered By Earnings

While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. Based on the last payment, Assystem was quite comfortably earning enough to cover the dividend. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth.

Looking forward, earnings per share is forecast to rise by 55.4% over the next year. If the dividend continues on this path, the payout ratio could be 29% by next year, which we think can be pretty sustainable going forward.

Assystem Has A Solid Track Record

The company has an extended history of paying stable dividends. The annual payment during the last 10 years was €0.45 in 2013, and the most recent fiscal year payment was €1.00. This means that it has been growing its distributions at 8.3% 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

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Assystem has impressed us by growing EPS at 31% per year over the past five years. Assystem is clearly able to grow rapidly while still returning cash to shareholders, positioning it to become a strong dividend payer in the future.

Assystem Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Assystem might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. 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 Assystem that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.