Reasons to Consider Metro Inc. (TSE:MRU) for Its Upcoming Dividend

Metro Inc. Dividend Announcement

• Ex-Dividend Date: Metro Inc. (TSE:MRU) will trade ex-dividend in 3 days, with the cut-off date for shareholders set for September 4th. The dividend payment of CA$0.37 per share will be distributed on September 23rd.
• Previous Year’s Dividend: Last year, Metro distributed a total of CA$1.48 to shareholders, resulting in a trailing yield of approximately 1.5% based on the current share price of CA$98.44.

Dividend Sustainability

• Payout Ratios: Metro paid out 31% of its profits in dividends last year, and only 26% of its free cash flow, indicating a sustainable dividend structure.
• Earnings Growth: The company has seen its earnings per share grow at an annual rate of 11% over the past five years, suggesting strong financial health and the potential for future dividend increases.

Historical Dividend Growth

• Long-Term Growth Rate: Over the past decade, Metro has increased its dividend by an average of 14% per year, reflecting a consistent commitment to returning value to shareholders.
• Investment Potential: The combination of growing earnings and a conservative payout ratio positions Metro as an attractive option for dividend-seeking investors, with a lower risk of dividend cuts in the future.

Conclusion

• Investment Recommendation: Metro's ability to grow earnings while maintaining a low payout ratio makes it a compelling candidate for further research for those interested in strong dividend payers. The article emphasizes the importance of sustainable earnings growth in evaluating dividend prospects.