Hackett Group (NASDAQ:HCKT) Is Due To Pay A Dividend Of $0.12

The Hackett Group, Inc.'s (NASDAQ:HCKT) investors are due to receive a payment of $0.12 per share on 3rd of October. This means the dividend yield will be fairly typical at 2.3%.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Hackett Group's Future Dividend Projections Appear Well Covered By Earnings

Unless the payments are sustainable, the dividend yield doesn't mean too much. Prior to this announcement, Hackett Group's dividend made up quite a large proportion of earnings but only 37% of free cash flows. This leaves plenty of cash for reinvestment into the business.

Over the next year, EPS is forecast to expand by 45.2%. If the dividend continues on this path, the payout ratio could be 57% by next year, which we think can be pretty sustainable going forward.

View our latest analysis for Hackett Group

Hackett Group Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2015, the annual payment back then was $0.14, compared to the most recent full-year payment of $0.48. This means that it has been growing its distributions at 13% per annum over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Hackett Group has seen EPS rising for the last five years, at 11% per annum. EPS has been growing at a reasonable rate, although with most of the profits being paid out to shareholders, growth prospects could be more limited in the future.

Hackett Group Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Hackett Group might even raise payments in the future. 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 example, we've picked out 1 warning sign for Hackett Group that investors should know about before committing capital to this stock. Is Hackett Group not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.