Caxton and CTP Publishers and Printers (JSE:CAT) Has Affirmed Its Dividend Of ZAR0.60

The board of Caxton and CTP Publishers and Printers Limited (JSE:CAT) has announced that it will pay a dividend of ZAR0.60 per share on the 9th of December. This makes the dividend yield 4.8%, which will augment investor returns quite nicely.

See our latest analysis for Caxton and CTP Publishers and Printers

Caxton and CTP Publishers and Printers' Payment Could Potentially Have Solid Earnings Coverage

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. However, Caxton and CTP Publishers and Printers' earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.

Over the next year, EPS could expand by 16.1% if recent trends continue. If the dividend continues along recent trends, we estimate the payout ratio will be 28%, which is in the range that makes us comfortable with the sustainability of the dividend.

Dividend Volatility

The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2014, the dividend has gone from ZAR0.55 total annually to ZAR0.60. Dividend payments have grown at less than 1% a year over this period. We're glad to see the dividend has risen, but with a limited rate of growth and fluctuations in the payments the total shareholder return may be limited.

The Dividend Looks Likely To Grow

Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. It's encouraging to see that Caxton and CTP Publishers and Printers has been growing its earnings per share at 16% a year over the past five years. Caxton and CTP Publishers and Printers definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like Caxton and CTP Publishers and Printers' Dividend

Overall, we like to see the dividend staying consistent, and we think Caxton and CTP Publishers and Printers 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 instance, we've picked out 1 warning sign for Caxton and CTP Publishers and Printers that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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.