Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság (BUSE:GSPARK) Will Pay A Dividend Of €0.70

Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság (BUSE:GSPARK) has announced that it will pay a dividend of €0.70 per share on the 21st of May. Based on this payment, the dividend yield on the company's stock will be 5.5%, which is an attractive boost to shareholder returns.

Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság's Future Dividend Projections Appear Well Covered By Earnings

If the payments aren't sustainable, a high yield for a few years won't matter that much. Based on the last payment, Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság was quite comfortably earning enough to cover the dividend. This indicates that quite a large proportion of earnings is being invested back into the business.

Over the next year, EPS could expand by 0.9% if recent trends continue. If the dividend continues along recent trends, we estimate the payout ratio will be 45%, which is in the range that makes us comfortable with the sustainability of the dividend.

Check out our latest analysis for Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság

Dividend Volatility

The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the annual payment back then was €0.279, compared to the most recent full-year payment of €0.71. This implies that the company grew its distributions at a yearly rate of about 9.8% over that duration. We have seen cuts in the past, so while the growth looks promising we would be a little bit cautious about its track record.

Dividend Growth May Be Hard To Achieve

Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Unfortunately, Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság's earnings per share has been essentially flat over the past five years, which means the dividend may not be increased each year. Growth of 0.9% may indicate that the company has limited investment opportunity so it is returning its earnings to shareholders instead. This isn't necessarily bad, but we wouldn't expect rapid dividend growth in the future.

Our Thoughts On Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság's Dividend

Overall, we think Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság is a solid choice as a dividend stock, even though the dividend wasn't raised this year. The payout ratio looks good, but unfortunately the company's dividend track record isn't stellar. Taking all of this into consideration, the dividend looks viable moving forward, but investors should be mindful that the company has pushed the boundaries of sustainability in the past and may do so again.

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 example, we've identified 2 warning signs for Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság (1 makes us a bit uncomfortable!) that you should be aware of before investing. 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.