Tigné Mall (MTSE:TML) Has Announced A Dividend Of €0.013

The board of Tigné Mall p.l.c. (MTSE:TML) has announced that it will pay a dividend of €0.013 per share on the 2nd of September. This payment means that the dividend yield will be 3.7%, which is around the industry average.

Check out our latest analysis for Tigné Mall

Tigné Mall'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, prior to this announcement, Tigné Mall's dividend was comfortably covered by both cash flow and earnings. As a result, a large proportion of what it earned was being reinvested back into the business.

EPS is set to grow by 1.1% over the next year if recent trends continue. If recent patterns in the dividend continue, the payout ratio in 12 months could be 78% which is a bit high but can definitely be sustainable.

Tigné Mall's Dividend Has Lacked Consistency

It's comforting to see that Tigné Mall has been paying a dividend for a number of years now, however it has been cut at least once in that time. This makes us cautious about the consistency of the dividend over a full economic cycle. The dividend has gone from an annual total of €0.0125 in 2014 to the most recent total annual payment of €0.026. This implies that the company grew its distributions at a yearly rate of about 9.6% over that duration. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once.

The Dividend's Growth Prospects Are Limited

Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Tigné Mall hasn't seen much change in its earnings per share over the last five years. While EPS growth is quite low, Tigné Mall has the option to increase the payout ratio to return more cash to shareholders.

In Summary

Overall, a consistent dividend is a good thing, and we think that Tigné Mall has the ability to continue this into the future. While the payout ratios are a good sign, we are less enthusiastic about the company's dividend record. This looks like it could be a good dividend stock going forward, but we would note that the payout ratio has been at higher levels in the past so it could happen again.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. To that end, Tigné Mall has 3 warning signs (and 1 which can't be ignored) we think you should know about. Is Tigné Mall not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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