您现在的位置是:7 h f b q y k f i f s o x 0 q q q j y j h c c o u b > Leisure
【does god frown on illegal immigration】Is Husqvarna AB (publ) (STO:HUSQ B) An Attractive Dividend Stock?
7 h f b q y k f i f s o x 0 q q q j y j h c c o u b2024-09-29 12:25:00【Leisure】6人已围观
简介Is Husqvarna AB (publ) (STO:HUSQ B) a good dividend stock? How can we tell? Dividend paying companie does god frown on illegal immigration
Is Husqvarna AB (publ) (
STO:HUSQ B
) a good dividend stock?does god frown on illegal immigration How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments.
A slim 3.0% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Husqvarna could have potential. Some simple research can reduce the risk of buying Husqvarna for its dividend - read on to learn more.
Explore this interactive chart for our latest analysis on Husqvarna!
OM:HUSQ B Historical Dividend Yield, January 1st 2020
Payout ratios
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Husqvarna paid out 65% of its profit as dividends, over the trailing twelve month period. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift the payout ratio over time.
We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. The company paid out 78% of its free cash flow as dividends last year, which is adequate, but reduces the wriggle room in the event of a downturn. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Remember, you can always get a snapshot of Husqvarna's latest financial position,
by checking our visualisation of its financial health
.
Dividend Volatility
From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of Husqvarna's dividend payments. The dividend has been stable over the past 10 years, which is great. We think this could suggest some resilience to the business and its dividends. During the past ten-year period, the first annual payment was kr1.00 in 2010, compared to kr2.25 last year. This works out to be a compound annual growth rate (CAGR) of approximately 8.4% a year over that time.
Companies like this, growing their dividend at a decent rate, can be very valuable over the long term, if the rate of growth can be maintained.
Dividend Growth Potential
While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. It's good to see Husqvarna has been growing its earnings per share at 17% a year over the past five years. Husqvarna's earnings per share have grown rapidly in recent years, although more than half of its profits are being paid out as dividends, which makes us wonder if the company has a limited number of reinvestment opportunities in its business.
Conclusion
Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. First, we think Husqvarna is paying out an acceptable percentage of its cashflow and profit. We like that it has been delivering solid improvement in its earnings per share, and relatively consistent dividend payments. Husqvarna has a number of positive attributes, but it falls slightly short of our (admittedly high) standards. Were there evidence of a strong moat or an attractive valuation, it could still be well worth a look.
Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 7 analysts we track are forecasting for Husqvarna
for free
with public
analyst estimates for the company
.
We have also put together a
list of global stocks with a market capitalisation above $1bn and yielding more 3%.
If you spot an error that warrants correction, please contact the editor at
. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
View comments
很赞哦!(15)
相关文章
- Is Now The Time To Look At Buying National Beverage Corp. (NASDAQ:FIZZ)?
- Skydance Sports Teams With Religion Of Sports On Content Development, Scripted Series ‘The Owl’ First Project
- S.Korea's Hyundai target 2019 global sales of 4.7 mln vehicles
- Arconic shares jump after report of buyout by Apollo Global
- U.S. SEC eases crowdfunding rules for firms due to coronavirus disruption
- BRIEF-Inner Mongolia Xingye Mining Buys Back Company's Shares Worth 199.9 Mln Yuan
- What Kind Of Shareholder Appears On The Wanbury Limited’s (NSE:WANBURY) Shareholder Register?
- Lawsuit Targets Nvidia for ‘False Statements’ on Crypto Mining Revenue
- Rental fleet collapse drags down U.S. vehicle sales
- Over 900 Retailers Now Accepting Bitcoin Cash
热门文章
站长推荐
Is Wanda Sports Group (WSG) A Good Stock To Buy Now?
GLOBAL ECONOMY-U.S.-China trade war takes toll on global manufacturing
Why General Electric Stock Popped 8% Today
Do Insiders Own Lots Of Shares In Speciality Restaurants Limited (NSE:SPECIALITY)?
Our Take On Avery Dennison's (NYSE:AVY) CEO Salary
‘Sex/Life’ Star Sarah Shahi Inks With IAG And Untitled
BRIEF-Hytera Communications Expects To Win China Mobile's Bids For About 288 Mln Yuan
What To Know Before Buying Cabot Microelectronics Corporation (NASDAQ:CCMP) For Its Dividend
友情链接
- Here's What World Precision Machinery Limited's (SGX:B49) P/E Is Telling Us
- Business owners contend with threat, reality of coronavirus
- United Kingdom Cardiac Rhythm Management Devices Market Outlook to 2025 - Cardiac Resynchronisation Therapy (CRT), Implantable Cardioverter Defibrillators (ICD), Implantable Loop Recorders (ILR) and Pacemakers
- GREATERGOOD.ORG ANNOUNCES “THANK YOUR TEACHER” CHALLENGE ON THE NEW GIRLS’ VOICES AT HOME PLATFORM
- German carmakers had crisis call with Merkel: Handelsblatt
- ROYAL DUTCH SHELL PLC THIRD QUARTER 2020 EURO AND GBP EQUIVALENT DIVIDEND PAYMENTS
- S.Korea's Moon tells Trump he would accept invitation to G7 summit
- Organic elderberries recalled over possible salmonella contamination
- Top Ranked Growth Stocks to Buy for June 4th
- aTyr Pharma to Webcast Conference Call Reporting Third Quarter 2020 Financial Results - Management to host conference call and webcast on November 12th at 5:00 pm EST / 2:00 pm PST