Braime Group: Dividend Payment Scheduled for October

The Braime Group will distribute a dividend of £0.0525 on October 11. This corresponds to an annual payout ratio of 1.2% of the current stock price, which is below the industry average. Even a low dividend yield can be attractive if maintained over the long term. Prior to this announcement, Braime Group effortlessly generated enough to cover the dividend. The majority of the profits are used for the company's expansion. Earnings per share (EPS) could decline by 2.0% over the next 12 months if recent trends continue. Should the dividend payout be maintained, the payout ratio could be around 12% – a comfortable value that allows the majority of earnings to be reserved for future growth. The company has a long-standing track record of dividend payments with minimal fluctuations. In 2014, the annual payment was £0.086, while in the most recent fiscal year it was £0.148. This represents an average annual growth rate of 5.5%. Such companies can be valuable in the long term, provided the growth rate is maintained. Shareholders who have been involved for several years are likely satisfied with the dividend income received. However, it is important not to rejoice prematurely, as underlying issues may be hidden. Over the past five years, earnings per share have declined by about 2.0% per year, suggesting that future dividend payouts could also decline. In summary, we are pleased that the dividend remains constant and see good chances that this will continue in the future. While the earnings coverage is satisfactory at the moment, the decline in earnings should be monitored. Taking all factors into account, the dividend appears sustainable in the long term, but investors should be aware that the company has previously pushed the limits of sustainability. A consistent dividend policy contributes to investor confidence, in contrast to an unstable one. Readers should, however, consider additional factors before investing in a stock. Furthermore, we have identified three warning signs in the Braime Group that investors should be aware of. Looking for additional high-dividend stocks? Discover our collection of strong dividend payers.