Technical Publications Service (BIT:TPS) Is Paying Out A Dividend Of €0.08

The board of Technical Publications Service S.p.A. (BIT:TPS) has announced that it will pay a dividend of €0.08 per share on the 7th of May. The dividend yield is 1.2% based on this payment, which is a little bit low compared to the other companies in the industry.

We've discovered 1 warning sign about Technical Publications Service. View them for free.

Technical Publications Service's Payment Could Potentially Have Solid Earnings Coverage

Even a low dividend yield can be attractive if it is sustained for years on end. However, prior to this announcement, Technical Publications Service's dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow.

If the trend of the last few years continues, EPS will grow by 13.8% over the next 12 months. Assuming the dividend continues along recent trends, we think the payout ratio could be 12% by next year, which is in a pretty sustainable range.

View our latest analysis for Technical Publications Service

Technical Publications Service Is Still Building Its Track Record

The dividend's track record has been pretty solid, but with only 6 years of history we want to see a few more years of history before making any solid conclusions. The dividend has gone from an annual total of €0.05 in 2019 to the most recent total annual payment of €0.08. This works out to be a compound annual growth rate (CAGR) of approximately 8.1% a year over that time. Technical Publications Service has been growing its dividend at a decent rate, and the payments have been stable. However, the payment history is very short, so there is no evidence yet that the dividend can be sustained over a full economic cycle.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that Technical Publications Service has been growing its earnings per share at 14% a year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Technical Publications Service's prospects of growing its dividend payments in the future.

Technical Publications Service Looks Like A Great Dividend Stock

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Technical Publications Service that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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