Equasens Société anonyme's (EPA:EQS) Shareholders Will Receive A Bigger Dividend Than Last Year

Equasens Société anonyme's (EPA:EQS) periodic dividend will be increasing on the 5th of July to €1.15, with investors receiving 9.5% more than last year's €1.05. This will take the annual payment to 1.4% of the stock price, which is above what most companies in the industry pay.

Check out our latest analysis for Equasens Société anonyme

Equasens Société anonyme's Dividend Is Well Covered By Earnings

If the payments aren't sustainable, a high yield for a few years won't matter that much. However, Equasens Société anonyme's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

The next year is set to see EPS grow by 29.4%. If the dividend continues along recent trends, we estimate the payout ratio will be 34%, which is in the range that makes us comfortable with the sustainability of the dividend.

Equasens Société anonyme Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2013, the annual payment back then was €0.42, compared to the most recent full-year payment of €1.05. This works out to be a compound annual growth rate (CAGR) of approximately 9.6% a year 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 could be attracted to the stock based on the quality of its payment history. Equasens Société anonyme has impressed us by growing EPS at 15% per year over the past five years. Equasens Société anonyme definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Equasens Société anonyme Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Equasens Société anonyme is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 4 analysts we track are forecasting for Equasens Société anonyme for free with public analyst estimates for the company. 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.