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Orion Oyj (HEL:ORNBV) Will Pay A Dividend Of €0.82

Simply Wall St · 08/02 07:37

Orion Oyj (HEL:ORNBV) will pay a dividend of €0.82 on the 23rd of October. This takes the annual payment to 2.3% of the current stock price, which is about average for the industry.

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Orion Oyj's Future Dividend Projections Appear Well Covered By Earnings

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. Based on the last dividend, Orion Oyj is earning enough to cover the payment, but then it makes up 106% of cash flows. While the company may be more focused on returning cash to shareholders than growing the business at this time, we think that a cash payout ratio this high might expose the dividend to being cut if the business ran into some challenges.

Over the next year, EPS is forecast to expand by 55.8%. If the dividend continues along recent trends, we estimate the payout ratio will be 40%, which is in the range that makes us comfortable with the sustainability of the dividend.

historic-dividend
HLSE:ORNBV Historic Dividend August 2nd 2025

Check out our latest analysis for Orion Oyj

Orion Oyj Has A Solid Track Record

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 €1.30 in 2015, and the most recent fiscal year payment was €1.64. This means that it has been growing its distributions at 2.4% per annum over that time. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive.

We Could See Orion Oyj's Dividend Growing

Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Orion Oyj has been growing its earnings per share at 7.7% a year over the past five years. The company is paying out a lot of its cash as a dividend, but it looks okay based on the payout ratio.

In Summary

In summary, while it's always good to see the dividend being raised, we don't think Orion Oyj's payments are rock solid. While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. We would be a touch cautious of relying on this stock primarily for the dividend income.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for Orion Oyj that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.