4imprint Group (LON:FOUR) Will Pay A Larger Dividend Than Last Year At $0.3301




  • In Business
  • 2022-08-13 07:23:38Z
  • By Simply Wall St.
 

4imprint Group plc's (LON:FOUR) dividend will be increasing from last year's payment of the same period to $0.3301 on 16th of September. Despite this raise, the dividend yield of 1.7% is only a modest boost to shareholder returns.

While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that 4imprint Group's stock price has increased by 31% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.

View our latest analysis for 4imprint Group

4imprint Group's Earnings Easily Cover The Distributions

If it is predictable over a long period, even low dividend yields can be attractive. However, 4imprint Group's earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.

The next year is set to see EPS grow by 18.6%. If the dividend continues along recent trends, we estimate the payout ratio will be 23%, which is in the range that makes us comfortable with the sustainability of the dividend.

Dividend Volatility

While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The annual payment during the last 10 years was $0.228 in 2012, and the most recent fiscal year payment was $0.80. This implies that the company grew its distributions at a yearly rate of about 13% over that duration. It is great to see strong growth in the dividend payments, but cuts are concerning as it may indicate the payout policy is too ambitious.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. It's encouraging to see that 4imprint Group has been growing its earnings per share at 14% a year over the past five years. 4imprint Group definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like 4imprint Group's Dividend

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend 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. Just as an example, we've come across 2 warning signs for 4imprint Group you should be aware of, and 1 of them can't be ignored. 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.

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

COMMENTS

More Related News

Mastercard
Mastercard's (NYSE:MA) five-year total shareholder returns outpace the underlying earnings growth

Mastercard Incorporated ( NYSE:MA ) shareholders have seen the share price descend 14% over the month. But in stark...

Becton Dickinson
Becton Dickinson's (NYSE:BDX) earnings growth rate lags the 5.5% CAGR delivered to shareholders

If you buy and hold a stock for many years, you'd hope to be making a profit. Furthermore, you'd generally like to see...

Is Cigna Corporation
Is Cigna Corporation's (NYSE:CI) Stock's Recent Performance A Reflection Of Its Financial Health?

Cigna's (NYSE:CI) stock up by 4.8% over the past three months. Given that the market rewards strong financials in the...

Applied Materials (NASDAQ:AMAT) sheds 5.2% this week, as yearly returns fall more in line with earnings growth
Applied Materials (NASDAQ:AMAT) sheds 5.2% this week, as yearly returns fall more in line with earnings growth

It might be of some concern to shareholders to see the Applied Materials, Inc. ( NASDAQ:AMAT ) share price down 17% in...

Merck (NYSE:MRK) shareholders have earned a 11% CAGR over the last five years
Merck (NYSE:MRK) shareholders have earned a 11% CAGR over the last five years

If you buy and hold a stock for many years, you'd hope to be making a profit. Better yet, you'd like to see the share...

Leave a Comment

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

Cancel reply

Comments

Top News: Business