Yahoo Finance Compagnie Financière Tradition's (VTX:CFT) Upcoming Dividend Will Be Larger Than Last Year's
Compagnie Financière Tradition SA's (VTX:CFT) dividend will be increasing from last year's payment of the same period to CHF5.50 on 6th of June. This makes the dividend yield 4.5%, which is above the industry average.
See our latest analysis for Compagnie Financière Tradition
Compagnie Financière Tradition's Dividend Is Well Covered By Earnings
While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Prior to this announcement, Compagnie Financière Tradition's dividend was comfortably covered by both cash flow and earnings. This indicates that quite a large proportion of earnings is being invested back into the business.
Over the next year, EPS could expand by 13.1% if recent trends continue. If the dividend continues on this path, the payout ratio could be 44% by next year, which we think can be pretty sustainable going forward.
Compagnie Financière Tradition Has A Solid Track Record
The company has an extended history of paying stable dividends. The annual payment during the last 10 years was CHF1.87 in 2013, and the most recent fiscal year payment was CHF5.50. This implies that the company grew its distributions at a yearly rate of about 11% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Compagnie Financière Tradition has grown earnings per share at 13% per year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.
Compagnie Financière Tradition Looks Like A Great Dividend Stock
Overall, a dividend increase is always good, and we think that Compagnie Financière Tradition is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. See if management have their own wealth at stake, by checking insider shareholdings in Compagnie Financière Tradition stock. Is Compagnie Financière Tradition not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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