By james art 
Wilmington PLC (LON: WIL) will pay a dividend of 0.03 pounds on April 4. The dividend yield will be 3.3% based on this payment, which is still above the average for the industry.
Check out our latest analysis of Wilmington
Although it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. The last payment makes up 73% of the profits, but the cash flows were much higher. In general, cash flows are more important than profit, so we are comfortable that the dividend will be resistant forward, especially with so much money left for reinvesting.
Expecting ahead, the profit per share is expected to grow by 50.2% next year. If the dividend continues with the latest trends, we appreciate that the payment ratio will be 50%, which is in the range, which makes us comfortable with the resistance of the dividend.
The company has a long dividend experience, but in the past it does not look great with cuts. The annual payment in the last 10 years was £ 0.072 in 2015, and the fiscal year’s most payment was 0.113 pounds. This is a complex annual growth rate (CAGR) of approximately 4.6% annually during this time. The dividend has seen some fluctuations in the past, so although the dividend has been raised this year, we must remember that it has been shortened in the past.
With a relatively unstable dividend, it is even more important to evaluate whether the profit per share is increasing, which can point to the growing dividend in the future. Wilmington impressed us by growing EPS by 7.8% annually in the last five years. EPS is growing at a reasonable rate, although with most profits they are paid to shareholders, growth prospects can be more restricted in the future.
In summary, we are pleased that the dividend remains consistent and we believe that there is a great chance that this will continue in the future. Although payout ratios are a good sign, we are less enthusiastic about the company’s dividend recording. This seems to be a good dividend stock forward, but it will be noted that the payment ratio was at higher levels in the past, so it can be repeated.
Companies with a stable dividend policy are likely to enjoy the bigger interest of investors than suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors that our readers need to know when evaluating a company. For example, we have chosen 1 Wilmington Warning sign that investors should take into account. Isn’t Wilmington quite the opportunity you were looking for? Why don’t you look at our Choosing the best dividends.
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