Why You Might Be Interested In IntegraFin Holdings plc (LON:IHP) For Its Upcoming Dividend

It looks like IntegraFin Holdings plc (LON:IHP) is about to go ex-dividend in the next three days. You will need to purchase shares before the 24th of December to receive the dividend, which will be paid on the 22nd of January.

IntegraFin Holdings's next dividend payment will be UK£0.056 per share, on the back of last year when the company paid a total of UK£0.083 to shareholders. Looking at the last 12 months of distributions, IntegraFin Holdings has a trailing yield of approximately 1.5% on its current stock price of £5.47. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.

Check out our latest analysis for IntegraFin Holdings

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. IntegraFin Holdings paid out more than half (60%) of its earnings last year, which is a regular payout ratio for most companies.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's comforting to see IntegraFin Holdings's earnings have been skyrocketing, up 23% per annum for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, two years ago, IntegraFin Holdings has lifted its dividend by approximately 14% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

To Sum It Up

From a dividend perspective, should investors buy or avoid IntegraFin Holdings? Earnings per share are growing at an attractive rate, and IntegraFin Holdings is paying out a bit over half its profits. In summary, IntegraFin Holdings appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

Wondering what the future holds for IntegraFin Holdings? See what the six analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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.
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