Shopper Park Plus Nyilvánosan Muködo Részvénytársaság (BUSE:SPLUS) Will Pay A Larger Dividend Than Last Year At €0.84

Shopper Park Plus Nyilvánosan Muködo Részvénytársaság (BUSE:SPLUS) will increase its dividend from last year's comparable payment on the 10th of June to €0.84. This takes the dividend yield to 6.6%, which shareholders will be pleased with.

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Shopper Park Plus Nyilvánosan Muködo 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. Prior to this announcement, Shopper Park Plus Nyilvánosan Muködo Részvénytársaság's dividend was comfortably covered by both cash flow and earnings. This means that a large portion of its earnings are being retained to grow the business.

If the trend of the last few years continues, EPS will grow by 1.7% over the next 12 months. If the dividend continues on this path, the payout ratio could be 45% by next year, which we think can be pretty sustainable going forward.

Check out our latest analysis for Shopper Park Plus Nyilvánosan Muködo Részvénytársaság

Shopper Park Plus Nyilvánosan Muködo Részvénytársaság Is Still Building Its Track Record

Without a track record of dividend payments, we can't make a judgement on how stable it has been. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself.

Shopper Park Plus Nyilvánosan Muködo Részvénytársaság May Find It Hard To Grow The Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Although it's important to note that Shopper Park Plus Nyilvánosan Muködo Részvénytársaság's earnings per share has basically not grown from where it was five years ago, which could erode the purchasing power of the dividend over time. Growth of 1.7% per annum is not particularly high, which might explain why the company is paying out a higher proportion of earnings. This isn't necessarily bad, but we wouldn't expect rapid dividend growth in the future.

We should note that Shopper Park Plus Nyilvánosan Muködo Részvénytársaság has issued stock equal to 15% of shares outstanding. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective.

Our Thoughts On Shopper Park Plus Nyilvánosan Muködo Részvénytársaság's Dividend

Overall, it's great to see the dividend being raised and that it is still in a sustainable range. The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment. The payment isn't stellar, but it could make a decent addition to a dividend portfolio.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. To that end, Shopper Park Plus Nyilvánosan Muködo Részvénytársaság has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about. 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.