ANY Biztonsági Nyomda Nyrt (BUSE:ANY) Will Pay A Larger Dividend Than Last Year At HUF250.00

ANY Biztonsági Nyomda Nyrt. (BUSE:ANY) has announced that it will be increasing its dividend from last year's comparable payment on the 15th of July to HUF250.00. This takes the dividend yield to 5.8%, which shareholders will be pleased with.

See our latest analysis for ANY Biztonsági Nyomda Nyrt

ANY Biztonsági Nyomda Nyrt's Dividend Is Well Covered By Earnings

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Before making this announcement, ANY Biztonsági Nyomda Nyrt was paying out a fairly large proportion of earnings, and it wasn't generating positive free cash flows either. This is a pretty unsustainable practice, and could be risky if continued for the long term.

If the trend of the last few years continues, EPS will grow by 38.4% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio will be 50%, which would make us comfortable with the sustainability of the dividend, despite the levels currently being quite high.

ANY Biztonsági Nyomda Nyrt Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was HUF55.00 in 2014, and the most recent fiscal year payment was HUF250.00. This implies that the company grew its distributions at a yearly rate of about 16% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

ANY Biztonsági Nyomda Nyrt Might Find It Hard To Grow Its Dividend

The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that ANY Biztonsági Nyomda Nyrt has grown earnings per share at 38% per year over the past five years. Fast growing earnings are great, but this can rarely be sustained without some reinvestment into the business, which ANY Biztonsági Nyomda Nyrt hasn't been doing.

Our Thoughts On ANY Biztonsági Nyomda Nyrt's Dividend

Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. Although they have been consistent in the past, we think the payments are a little high to be sustained. We would probably look elsewhere for an income investment.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Just as an example, we've come across 3 warning signs for ANY Biztonsági Nyomda Nyrt you should be aware of, and 2 of them are a bit concerning. 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.

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