Bureau Veritas To Raise Dividend To €0.77
Bureau Veritas SA board said it will pay a €0.77 dividend on July 6. It's higher than last year. The dividend yield is 3.0%, similar to the industry average.
We have a new analysis for Bureau Veritas. Bureau Veritas is a company that offers testing, inspection and certification services. Our analysis shows that the company has been performing well financially. In the past year, Bureau Veritas has had a positive return on equity of over 12%. Their revenue has also been growing, with an increase of 6.5% in the last year. These positive trends suggest that Bureau Veritas may be a good investment opportunity. However, as with any investment, it's important to do your own research and consider all factors before making a decision.
Bureau Veritas Covers Distributions With Ease
If the payments don't last, the dividend yield isn't significant. The latest payment was 75% of earnings, but cash flows were greater. Usually, cash flows are more essential than earnings; therefore, we are confident the dividend will last, particularly with enough cash to reinvest.
EPS is expected to grow by 28.7% next year. If the dividend stays the same, the payout ratio could reach 57% by next year. We believe this is a good plan for the future.
The company pays a dividend, but it has cut it at least once in the past decade. In 2013, the annual payment was €0.318, but the latest full-year payment was €0.77. This means it's been growing its distributions by 9.3% each year. It's good that the rate of dividend growth is reasonable, but we're still careful because the history of the dividend being cut isn't very reassuring.
"Dividend Growth Potential"
To figure out if the dividend will grow, we need to check if earnings per share is growing. Bureau Veritas has been growing its earnings per share by 7.3% annually over the past five years, which is good. However, the payout ratio is high, so the growth rate might slow down and affect the dividend in the future.
Overall, the company can increase the dividend and maintain it sustainably. The payout ratio is good, but past history isn't great. The dividend payment isn't amazing, but it's okay for a dividend portfolio.
Investors like consistent dividend policies in companies. Bureau Veritas has 2 warning signs for investors to be aware of. If you're not interested in Bureau Veritas, look at our top dividend stocks.
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