ANY Biztonsági Nyomda Nyrt's (BUSE:ANY) Upcoming Dividend Will Be Larger Than Last Year's

ANY Biztonsági Nyomda Nyrt. (BUSE:ANY) will increase its dividend from last year's comparable payment on the 15th of July to HUF250.00. This takes the dividend yield to 6.0%, which shareholders will be pleased with.

While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that ANY Biztonsági Nyomda Nyrt's stock price has increased by 34% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.

Check out our latest analysis for ANY Biztonsági Nyomda Nyrt

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

A big dividend yield for a few years doesn't mean much if it can't be sustained. Prior to this announcement, ANY Biztonsági Nyomda Nyrt's dividend was making up a very large proportion of earnings, and the company was also not generating any cash flow to offset this. 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. Under the assumption that the dividend will continue along recent trends, we think the payout ratio could be 50% which would be quite comfortable going to take the dividend forward.

ANY Biztonsági Nyomda Nyrt Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was HUF55.00 in 2014, and the most recent fiscal year payment was HUF250.00. This means that it has been growing its distributions at 16% per annum over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

ANY Biztonsági Nyomda Nyrt's Dividend Might Lack Growth

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. ANY Biztonsági Nyomda Nyrt has impressed us by growing EPS at 38% per year over the past five years. However, ANY Biztonsági Nyomda Nyrt isn't reinvesting a lot back into the business, so we wonder how quickly it will be able to grow in the future.

Our Thoughts On ANY Biztonsági Nyomda Nyrt's Dividend

In summary, while it's always good to see the dividend being raised, we don't think ANY Biztonsági Nyomda Nyrt's payments are rock solid. We can't deny that the payments have been very stable, but we are a little bit worried about the very high payout ratio. Overall, we don't think this company has the makings of a good income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For example, we've identified 3 warning signs for ANY Biztonsági Nyomda Nyrt (2 are potentially serious!) that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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