Greif (NYSE: GEF) confirmed its dividend of US $ 0.44
by Greif, Inc. (NYSE: GEF) Investors are expected to receive a payment of $ 0.44 per share on July 1. The dividend yield will be 2.7% on the basis of this payment which remains above the sector average.
Check out our latest analysis for Greif
Greif’s dividend is well covered by profits
A high dividend yield for a few years doesn’t mean much if it can’t be sustained. However, prior to this announcement, Greif’s dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is used to help it grow.
Going forward, earnings per share are expected to grow 6.5% over the next year. If the dividend continues on this path, the payout ratio could reach 33% by next year, which we believe may be quite sustainable going forward.
Greif has a solid track record
The company has a long history of paying stable dividends. Since 2011, the dividend has increased from US $ 1.68 to US $ 1.76. Its dividends have grown by less than 1% per year during this period. Dividends have grown relatively slowly, which is not huge, but some investors may appreciate the relative consistency of the dividend.
The dividend seems likely to increase
Investors might be attracted to the stock depending on the quality of its payment history. We are encouraged to see that Greif has increased its earnings per share by 42% per year over the past five years. A low payout ratio gives the company a lot of flexibility, and the growth in earnings also allows it to increase the dividend very easily.
Greif looks like a great dividend-paying stock
Overall, we like to see the dividend stay constant and believe Greif may even increase payouts in the future. Distributions are quite easily covered by profits, which are also converted into cash flow. Considering all of this, this looks like a good dividend opportunity.
Companies with a stable dividend policy are likely to benefit from greater investor interest than those with a more inconsistent approach. At the same time, there are other factors that our readers should be aware of before investing any capital in a stock. For example, we have chosen 2 warning signs for Greif that investors should be aware of before committing capital to this stock. We have also set up a list of global stocks with a solid dividend.
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