IWS Group Holdings Limited (HKG: 8441) the dividend will increase to HK $ 0.033 on October 13. Based on the announced payment, the dividend yield for the company will be 4.6%, which is fairly typical for the industry.
Check out our latest analysis for IWS Group Holdings
IWS Group Holdings dividend is well covered by earnings
Strong dividend yields are great, but they only really help us if the payout is sustainable. Before making this announcement, IWS Group Holdings was easily earning enough to cover the dividend. As a result, much of what she earned was reinvested in the business.
Over the next year, EPS could increase by 37.5% if recent trends continue. If the dividend continues according to recent trends, we estimate the payout ratio will be 28%, which is within the range that puts us at ease with the sustainability of the dividend.
IWS Group Holdings does not have a long payment history
It is difficult to judge the stability of a dividend when the company has not paid one for a very long time. This doesn’t mean the company can’t pay a good dividend, just that we want to wait until it can prove itself.
The dividend seems likely to increase
Investors in the company will be happy to receive dividends for some time. It is encouraging to see that IWS Group Holdings has grown its earnings per share by 38% per year over the past five years. The earnings per share are growing at a steady pace and the payout ratio is low, which in our opinion is an ideal combination in a dividend stock because the company can quite easily increase the dividend in the future.
We really like the dividend from IWS Group Holdings
Overall, a dividend increase is always good, and we think IWS Group Holdings is a solid income stock thanks to its track record and growing earnings. The company easily earns enough to cover its dividend payments and it’s great to see that those profits translate into cash flow. All of these factors taken into account, we believe this has strong potential as a dividend-paying stock.
Investors generally tend to favor companies with a consistent and stable dividend policy over those that operate irregularly. At the same time, there are other factors that our readers should be aware of before investing any capital in a stock. Taking the debate a step further, we identified 3 warning signs for IWS Group Holdings that investors need to be aware of moving forward. We have also set up a list of global stocks with a solid dividend.
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