Gentex's (NASDAQ:GNTX) Dividend Will Be $0.12

  • In Business
  • 2022-10-04 11:37:32Z
  • By Simply Wall St.

Gentex Corporation (NASDAQ:GNTX) has announced that it will pay a dividend of $0.12 per share on the 19th of October. This payment means the dividend yield will be 2.0%, which is below the average for the industry.

See our latest analysis for Gentex

Gentex's Payment Has Solid Earnings Coverage

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. However, Gentex'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 is forecast to rise by 100.6% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 19% by next year, which is in a pretty sustainable range.

Gentex Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The dividend has gone from an annual total of $0.24 in 2012 to the most recent total annual payment of $0.48. This implies that the company grew its distributions at a yearly rate of about 7.2% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

Gentex May Find It Hard To Grow The Dividend

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Unfortunately, Gentex's earnings per share has been essentially flat over the past five years, which means the dividend may not be increased each year. While EPS growth is quite low, Gentex has the option to increase the payout ratio to return more cash to shareholders.

We Really Like Gentex's Dividend

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income 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. Earnings growth generally bodes well for the future value of company dividend payments. See if the 10 Gentex analysts we track are forecasting continued growth with our free report on analyst estimates for the company. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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

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.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here


More Related News

Investors in Sopheon (LON:SPE) have made a notable return of 70% over the past five years
Investors in Sopheon (LON:SPE) have made a notable return of 70% over the past five years

Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the...

Investors in MiX Telematics (JSE:MIX) have unfortunately lost 27% over the last year
Investors in MiX Telematics (JSE:MIX) have unfortunately lost 27% over the last year

It's easy to match the overall market return by buying an index fund. Active investors aim to buy stocks that vastly...

Deutsche Telekom (ETR:DTE) Is Increasing Its Dividend To €0.70
Deutsche Telekom (ETR:DTE) Is Increasing Its Dividend To €0.70

The board of Deutsche Telekom AG ( ETR:DTE ) has announced that the dividend on 11th of April will be increased to...

US Jobs Report Likely to Show Subtle Progress for Fed: Eco Week
US Jobs Report Likely to Show Subtle Progress for Fed: Eco Week

(Bloomberg) -- The latest reading of the US labor market on Friday is expected to show job growth on more of the downward glide path sought by Federal...

Is Cosmo Pharmaceuticals N.V.
Is Cosmo Pharmaceuticals N.V.'s (VTX:COPN) Recent Stock Performance Influenced By Its Fundamentals In Any Way?

Most readers would already be aware that Cosmo Pharmaceuticals' (VTX:COPN) stock increased significantly by 20% over...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business