ANY Biztonsági Nyomda Nyrt. (BUSE:ANY) will increase its dividend from last year's comparable payment on the 15th of July to HUF450.00. This makes the dividend yield 5.4%, which is above the industry average.
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 ANY Biztonsági Nyomda Nyrt's stock price has increased by 38% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.
We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Based on the last dividend, ANY Biztonsági Nyomda Nyrt is earning enough to cover the payment, but then it makes up 393% of cash flows. This signals that the company is more focused on returning cash flow to shareholders, but it could mean that the dividend is exposed to cuts in the future.
If the trend of the last few years continues, EPS will grow by 51.3% over the next 12 months. Assuming the dividend continues along recent trends, we think the payout ratio could be 50% by next year, which is in a pretty sustainable range.
See our latest analysis for ANY Biztonsági Nyomda Nyrt
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was HUF73.00 in 2015, and the most recent fiscal year payment was HUF450.00. This means that it has been growing its distributions at 20% per annum over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.
Investors could be attracted to the stock based on the quality of its payment history. ANY Biztonsági Nyomda Nyrt has seen EPS rising for the last five years, at 51% per annum. The company's earnings per share has grown rapidly in recent years, and it has a good balance between reinvesting and paying dividends to shareholders, so we think that ANY Biztonsági Nyomda Nyrt could prove to be a strong dividend payer.
Overall, we always like to see the dividend being raised, but we don't think ANY Biztonsági Nyomda Nyrt will make a great income stock. While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. This company is not in the top tier of income providing stocks.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For example, we've identified 2 warning signs for ANY Biztonsági Nyomda Nyrt (1 makes us a bit uncomfortable!) that you should be aware of before investing. Is ANY Biztonsági Nyomda Nyrt not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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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.