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PageGroup plc (LON:PAGE) is a true Dividend Rock Star. Its yield of 5.3% makes it one of the market’s top dividend payer. In the past ten years, PageGroup has also grown its dividend from £0.085 to £0.25. Below, I have outlined more attractive dividend aspects for PageGroup for income investors who may be interested in new dividend stocks for their portfolio.
See our latest analysis for PageGroup
What Is A Dividend Rock Star?
It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically:
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Its annual yield is among the top 25% of dividend payers
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It has paid dividend every year without dramatically reducing payout in the past
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Its has increased its dividend per share amount over the past
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It is able to pay the current rate of dividends from its earnings
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It is able to continue to payout at the current rate in the future
High Yield And Dependable
PageGroup’s dividend yield stands at 5.3%, which is high for Professional Services stocks. But the real reason PageGroup stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. PAGE has increased its DPS from £0.085 to £0.25 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.
The company currently pays out 44% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 63%, leading to a dividend yield of around 5.2%. In addition to this, EPS should increase to £0.34. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward.
When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
Next Steps:
PageGroup’s strong dividend attributes make it, without a doubt, a stock dividend investors should be considering for their portfolios. However, given this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three essential factors you should look at: