Mivne Real Estate (K.D) (TLV:MVNE) Has Affirmed Its Dividend Of ₪0.0861

The board of Mivne Real Estate (K.D) Ltd (TLV:MVNE) has announced that it will pay a dividend of ₪0.0861 per share on the 12th of September. This means the dividend yield will be fairly typical at 4.0%.

See our latest analysis for Mivne Real Estate (K.D)

Mivne Real Estate (K.D)'s Payment Has Solid Earnings Coverage

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. However, Mivne Real Estate (K.D)'s earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.

Looking forward, earnings per share could rise by 23.7% over the next year if the trend from the last few years continues. Assuming the dividend continues along recent trends, we think the payout ratio could be 26% by next year, which is in a pretty sustainable range.

Mivne Real Estate (K.D)'s Dividend Has Lacked Consistency

Looking back, the company hasn't been paying the most consistent dividend, but with such a short dividend history it could be too early to draw solid conclusions. Since 2020, the annual payment back then was ₪0.135, compared to the most recent full-year payment of ₪0.36. This works out to be a compound annual growth rate (CAGR) of approximately 39% a year over that time. Despite the rapid growth in the dividend over the past number of years, we have seen the payments go down the past as well, so that makes us cautious.

The Dividend Looks Likely To Grow

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. Mivne Real Estate (K.D) has impressed us by growing EPS at 24% per year over the past five years. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future.

We Really Like Mivne Real Estate (K.D)'s Dividend

Overall, we like to see the dividend staying consistent, and we think Mivne Real Estate (K.D) might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an 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. To that end, Mivne Real Estate (K.D) has 4 warning signs (and 1 which is potentially serious) we think you should know about. Is Mivne Real Estate (K.D) not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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