James Halstead (LON:JHD) Announces Dividend Increase to £0.0605
Dividend Increase: James Halstead plc will increase its periodic dividend to £0.0605 on December 12, representing a 0.8% rise from last year's payment, resulting in a dividend yield of 6.3%, above the industry average.
Sustainability Concerns: The company has a high payout ratio, with dividends constituting 118% of cash flows, raising concerns about the sustainability of future payments, despite a stable dividend history.
Earnings Growth: EPS is projected to grow by 13.1% over the next year, but the slow growth of earnings at 3.4% per year may lead to a payout ratio reaching 83%, which is on the higher side.
Investor Caution: While the dividend has been stable, the high payout ratio and slow earnings growth suggest that investors seeking strong dividend growth may want to consider other options.
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