Olin (NYSE:OLN) Is Due To Pay A Dividend Of $0.20

The board of Olin Corporation (NYSE:OLN) has announced that it will pay a dividend of $0.20 per share on the 13th of December. This means that the annual payment will be 1.9% of the current stock price, which is in line with the average for the industry.

View our latest analysis for Olin

Olin's Payment Could Potentially Have Solid Earnings Coverage

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Prior to this announcement, Olin's dividend was comfortably covered by both cash flow and earnings. This indicates that quite a large proportion of earnings is being invested back into the business.

According to analysts, EPS should be several times higher next year. If the dividend extends its recent trend, estimates say the dividend could reach 15%, which we would be comfortable to see continuing.

Olin Has A Solid Track Record

The company has an extended history of paying stable dividends. The last annual payment of $0.80 was flat on the annual payment from10 years ago. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Olin has seen EPS rising for the last five years, at 12% per annum. Shareholders are getting plenty of the earnings returned to them, which combined with strong growth makes this quite appealing.

Olin Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Olin 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.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. To that end, Olin has 2 warning signs (and 1 which is a bit concerning) we think you should know about. Is Olin not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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