Hiper Global's (TLV:HIPR) Dividend Will Be Increased To $0.095

Hiper Global Ltd. (TLV:HIPR) will increase its dividend from last year's comparable payment on the 11th of December to $0.095. Even though the dividend went up, the yield is still quite low at only 1.8%.

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Estimates Indicate Hiper Global's Could Struggle to Maintain Dividend Payments In The Future

Even a low dividend yield can be attractive if it is sustained for years on end. However, prior to this announcement, Hiper Global's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business.

Earnings per share could rise by 19.6% over the next year if things go the same way as they have for the last few years. However, if the dividend continues along recent trends, it could start putting pressure on the balance sheet with the payout ratio reaching 138% over the next year.

View our latest analysis for Hiper Global

Hiper Global's Dividend Has Lacked Consistency

The track record isn't the longest, but we are already seeing a bit of instability in the payments. Since 2022, the annual payment back then was $0.15, compared to the most recent full-year payment of $0.103. Dividend payments have fallen sharply, down 31% over that time. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS is growing. Hiper Global has impressed us by growing EPS at 20% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Hiper Global Looks Like A Great Dividend Stock

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Now, if you want to look closer, it would be worth checking out our free research on Hiper Global management tenure, salary, and performance. 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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