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Métropole Télévision S.A. (EPA:MMT) is a true Dividend Rock Star. Its yield of 6.1% makes it one of the market's top dividend payer. In the past ten years, Métropole Télévision has also grown its dividend from €0.85 to €1. Below, I have outlined more attractive dividend aspects for Métropole Télévision for income investors who may be interested in new dividend stocks for their portfolio.
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:
- It is paying an annual yield above 75% of dividend payers
- It consistently pays out dividend without missing a payment or significantly cutting payout
- Its has increased its dividend per share amount over the past
- It can afford to pay the current rate of dividends from its earnings
- It has the ability to keep paying its dividends going forward
High Yield And Dependable
Métropole Télévision currently yields 6.1%, which is high for Media stocks. But the real reason Métropole Télévision stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you're investor who wants a robust cash inflow from your portfolio over a long period of time.
Reliability is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. MMT has increased its DPS from €0.85 to €1 in the past 10 years. It has also been paying out dividend consistently during this time, as you'd expect for a company increasing its dividend levels. This is an impressive feat, which makes MMT a true dividend rockstar.
The current trailing twelve-month payout ratio for the stock is 72%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 73% which, assuming the share price stays the same, leads to a dividend yield of around 6.2%. In addition to this, EPS should increase to €1.4.
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.
With Métropole Télévision producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a top dividend generator moving forward. 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. I've put together three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for MMT’s future growth? Take a look at our free research report of analyst consensus for MMT’s outlook.
- Valuation: What is MMT worth today? Even if the stock is a cash cow, it's not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether MMT is currently mispriced by the market.
- Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.