Boise Cascade’s Dividend (NYSE: BCC) will be $ 0.21 – just wall st st

Boise Cascade Company (NYSE: BCC) will pay a dividend of $ 0.21 on March 19. Based on this payment, the yield of a dividend on the company’s shares will be 4.9%, which is an attractive impetus to the return on shareholders.

Check out our latest Boise Cascade analysis

Boise Cascade’s payment may potentially have a solid profit coverage

We like to see stable dividend income, but it doesn’t matter if the payment is not sustainable. However, before this message, Boise Cascade was quite comfortably covered by its dividend with profits and paid more than 75% of its free cash flow to shareholders. However, with more than 75% of the free cash flow of shareholders, future growth can potentially be limited.

Expecting ahead, the profit per share is expected to grow by 21.1% next year. If the dividend continues this path, the payout rate may be 54% until next year, which we think can be quite resilient forward.

Boise Cascade’s dividend is missing sequence

Boise Cascade pays dividends for a while, but the recording is not star. Therefore, we are a little cautious about the dividend sequence through a complete economic cycle. The dividend was from an annual amount of $ 0.28 in 2018 to the latest total annual payment of $ 5.84. This means that during this time it increases its distribution by 54% annually. Dividends are rapidly growing during this time, but with redundancies in the past we are not sure that this stock will be a reliable source of income in the future.

It seems that dividend is likely to grow

The increasing profit of an action can be a mitigating factor when considering past fluctuations in the dividend. Boise Cascade has observed that EPS has grown in the last five years, compared to 23% annually. The low repayment ratio gives the company a lot of flexibility, and increasing revenue also makes it very easy to increase dividend.

Our thoughts about Boise Cascade’s dividend

In general, we do not think that this company makes a great dividend, although the dividend was not shortened this year. While Boise Cascade earns enough to cover the dividend, we are usually not impressed by our future prospects. We would touch the reading of this shares mainly on dividend income.

Market movements testify to how highly apparent the permanent dividend policy is compared to one that is more uninsible. However, there are other things that should be taken into account for investors when analyzing the results of the shares. For example, we have chosen 2 Boise cascade warning signs that investors should take into account. Isn’t Boise Cascade quite the opportunity you’ve been looking for? Why don’t you look at our Choosing the best dividends.

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This Simply Wall ST article is general. We provide comments based on historical data and forecasts for analysts only using impartial methodology and our articles are not intended to be financial advice. This is not a recommendation to buy or sell shares and do not take into account your goals or your financial status. We strive to provide you with a long -term focused analysis led by basic data. Note that our analysis may not be reported in the latest significant companies or quality materials. Just Wall ST has no position in the reserves mentioned.