Ambra's (WSE:AMB) Dividend Will Be PLN1.10

Ambra S.A. (WSE:AMB) has announced that it will pay a dividend of PLN1.10 per share on the 13th of November. This makes the dividend yield 5.7%, which will augment investor returns quite nicely.

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Ambra's Projected Earnings Seem Likely To Cover Future Distributions

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Based on the last payment, Ambra was quite comfortably earning enough to cover the dividend. This means that a large portion of its earnings are being retained to grow the business.

The next year is set to see EPS grow by 5.5%. Assuming the dividend continues along recent trends, we think the payout ratio could be 64% by next year, which is in a pretty sustainable range.

Check out our latest analysis for Ambra

Ambra Has A Solid Track Record

The company has an extended history of paying stable dividends. The dividend has gone from an annual total of PLN0.50 in 2015 to the most recent total annual payment of PLN1.10. This implies that the company grew its distributions at a yearly rate of about 8.2% over that duration. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns.

Ambra Could Grow Its Dividend

The company's investors will be pleased to have been receiving dividend income for some time. Ambra has impressed us by growing EPS at 5.2% per year over the past five years. Since earnings per share is growing at an acceptable rate, and the payout policy is balanced, we think the company is positioning itself well to grow earnings and dividends in the future.

We Really Like Ambra's Dividend

Overall, we like to see the dividend staying consistent, and we think Ambra might even raise payments in the future. 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.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Ambra stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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