Dominiack Law Group

Main Menu

  • Home
  • Stock dividend
  • Liquid market
  • Year’s Maximum Pensionable Earnings
  • Import surveillance
  • Capital

Dominiack Law Group

Header Banner

Dominiack Law Group

  • Home
  • Stock dividend
  • Liquid market
  • Year’s Maximum Pensionable Earnings
  • Import surveillance
  • Capital
Stock dividend
Home›Stock dividend›Shareholders of Eutelsat Communications (EPA: ETL) to receive larger dividend than last year

Shareholders of Eutelsat Communications (EPA: ETL) to receive larger dividend than last year

By Michaela Ezzell
September 2, 2021
45
0

The advice of Eutelsat Communications SA (EPA: ETL) announced that it will increase its dividend on November 18 to € 0.93. This will bring the dividend yield from 9.5% to 9.5%, which will give shareholders returns a big boost.

Check out our latest analysis for Eutelsat Communications

Eutelsat Communications dividend is well covered by earnings

Impressive dividend yields are good, but it doesn’t matter much if the payouts can’t be sustained. Prior to this announcement, Eutelsat Communications’ dividend exceeded its earnings, but free cash flow covered it fairly comfortably. Since dividend is an outflow of cash, we believe cash is more important than accounting measures of profit when valuing dividend, so this is a mitigating factor.

Over the next year, EPS is expected to increase by 29.1%. If recent dividend trends continue, the 12 month payout ratio could be 78% which is a bit high but can certainly be sustainable.

ENXTPA: Historic ETL dividend September 2, 2021

Dividend volatility

The company has a long history of dividends, but it doesn’t look good with the cuts of the past. The first annual payment over the past 10 years was € 0.76 in 2011, and the last payment for the year was € 0.93. This implies that the company has increased its distributions at an annual rate of approximately 2.0% over that period. It’s good to see modest dividend growth, but we believe this is offset by historic reductions in payments. It is difficult to live on dividend income if the profits of the company are not constant.

Dividend growth is questionable

Since the dividend has been reduced in the past, we need to check if profits are increasing and if this could lead to higher dividends in the future. Over the past five years, earnings per share of Eutelsat Communications have declined by approximately 9.3% per year. If the company earns less over time, it naturally follows that it will also have to pay less dividends. Profits are expected to rise over the next 12 months and if that happens we could still be a little cautious until it becomes a trend.

The dividend could prove to be unreliable

In summary, while it’s always good to see the dividend increase, we don’t think Eutelsat Communications’ payouts are strong. Payments haven’t been particularly stable and we don’t see huge growth potential, but with the dividend well covered by cash flow, it could prove to be reliable in the short term. We would be a little cautious if we were relying on this security primarily for dividend income.

It is important to note that companies with a consistent dividend policy will generate greater investor confidence than those with an erratic policy. 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 selected 3 warning signs for Eutelsat Communications that investors should be aware of before committing capital to this stock. If you are a dividend investor, you can also view our curated list of high performing dividend stocks.

If you decide to trade Eutelsat Communications, use the cheapest platform * which is ranked # 1 overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, currencies, bonds and funds in 135 markets, all from one integrated account. Promoted

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St does not have any position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

Related posts:

  1. Is Scandinavian Tobacco Group A / S (CPH: STG) a sexy dividend-paying inventory?
  2. Does LiveChat Software program SA (WSE: LVC) have a spot in your dividend portfolio?
  3. SUN KWANG CO., Ltd. (KOSDAQ: 003100) Is An Engaging Dividend Inventory – Here is Why
  4. Kesla Oyj (HEL: KELAS) pays dividend of € 0.10 in simply 4 days
Tagslong term

Recent Posts

  • Bank of Hawaii Corporation Conference Call to Discuss Second Quarter 2022 Financial Results and Board Declares Quarterly Preferred Stock Dividend
  • Sustainable Foodservice Packaging Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)
  • Automated Teller Machine (ATM) Security System Market Will Reach New Level in Coming Year with Hikvision, Oberthur Cash Protection, BULL HORN ATM ALARM, Nobel Fire Systems
  • 7 stocks that will go ex-dividend this week
  • ESG remains a serious issue in the glove industry – Analysts

Archives

  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • July 2020
  • May 2020
  • April 2020
  • March 2020
  • January 2019
  • December 2018
  • May 2018
  • December 2017
  • November 2017
  • March 2017
  • November 2015
  • September 2015

Categories

  • Capital
  • Import surveillance
  • Liquid market
  • Stock dividend
  • Year's Maximum Pensionable Earnings
  • TERMS AND CONDITIONS
  • PRIVACY AND POLICY