Antin Infrastructure Partners SAS' (EPA:ANTIN) Dividend Will Be €0.34

Antin Infrastructure Partners SAS (EPA:ANTIN) will pay a dividend of €0.34 on the 14th of November. This makes the dividend yield 6.8%, which is above the industry average.

See our latest analysis for Antin Infrastructure Partners SAS

Antin Infrastructure Partners SAS' Projected Earnings Seem Likely To Cover Future Distributions

If the payments aren't sustainable, a high yield for a few years won't matter that much. Before making this announcement, the company's dividend was much higher than its earnings. It will be difficult to sustain this level of payout so we wouldn't be confident about this continuing.

Looking forward, earnings per share is forecast to rise by 108.3% over the next year. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 54% which brings it into quite a comfortable range.

Antin Infrastructure Partners SAS Is Still Building Its Track Record

Looking back, the dividend has been stable, but the company hasn't been paying a dividend for very long so we can't be confident that the dividend will remain stable through all economic environments. Since 2021, the annual payment back then was €0.11, compared to the most recent full-year payment of €0.73. This implies that the company grew its distributions at a yearly rate of about 88% over that duration. It is always nice to see strong dividend growth, but with such a short payment history we wouldn't be inclined to rely on it until a longer track record can be developed.

There Isn't Much Room To Grow The Dividend

The company's investors will be pleased to have been receiving dividend income for some time. Antin Infrastructure Partners SAS has seen EPS rising for the last three years, at 8.0% per annum. However, the company isn't reinvesting a lot back into the business, so we would expect the growth rate to slow down somewhat in the future.

The Dividend Could Prove To Be Unreliable

In summary, while it's always good to see the dividend being raised, we don't think Antin Infrastructure Partners SAS' payments are rock solid. The track record isn't great, and the payments are a bit high to be considered sustainable. Overall, we don't think this company has the makings of a good income 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 Antin Infrastructure Partners SAS that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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