Yahoo Finance SS&C Technologies Holdings (NASDAQ:SSNC) Has Affirmed Its Dividend Of $0.20
SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) has announced that it will pay a dividend of $0.20 per share on the 15th of June. The dividend yield is 1.4% based on this payment, which is a little bit low compared to the other companies in the industry.
Check out our latest analysis for SS&C Technologies Holdings
SS&C Technologies Holdings' Payment Has Solid Earnings Coverage
It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Before making this announcement, SS&C Technologies Holdings was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.
The next year is set to see EPS grow by 58.2%. If the dividend continues on this path, the payout ratio could be 25% by next year, which we think can be pretty sustainable going forward.
SS&C Technologies Holdings Is Still Building Its Track Record
The dividend's track record has been pretty solid, but with only 8 years of history we want to see a few more years of history before making any solid conclusions. Since 2015, the dividend has gone from $0.25 total annually to $0.80. This works out to be a compound annual growth rate (CAGR) of approximately 16% a year over that time. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted.
We Could See SS&C Technologies Holdings' Dividend Growing
The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that SS&C Technologies Holdings has been growing its earnings per share at 8.5% a year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.
SS&C Technologies Holdings Looks Like A Great Dividend Stock
In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 1 warning sign for SS&C Technologies Holdings that investors should know about before committing capital to this stock. Is SS&C Technologies Holdings 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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