St. Joe (NYSE:JOE) Will Pay A Dividend Of US$0.08

By
Simply Wall St
Published
October 30, 2021
NYSE:JOE
Source: Shutterstock

The board of The St. Joe Company (NYSE:JOE) has announced that it will pay a dividend on the 10th of December, with investors receiving US$0.08 per share. The dividend yield is 0.7% based on this payment, which is a little bit low compared to the other companies in the industry.

View our latest analysis for St. Joe

St. Joe's Dividend Is Well Covered By Earnings

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. However, St. Joe's earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.

Looking forward, earnings per share could rise by 49.3% over the next year if the trend from the last few years continues. If the dividend continues along recent trends, we estimate the payout ratio will be 20%, which is in the range that makes us comfortable with the sustainability of the dividend.

historic-dividend
NYSE:JOE Historic Dividend October 31st 2021

St. Joe Is Still Building Its Track Record

Without a track record of dividend payments, we can't make a judgement on how stable it has been. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. St. Joe has impressed us by growing EPS at 49% per year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.

St. Joe Looks Like A Great Dividend Stock

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. 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.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for St. Joe that investors should take into consideration. We have also put together a list of global stocks with a solid dividend.

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