Entravision Communications (NYSE:EVC) Is Due To Pay A Dividend Of $0.025
The board of Entravision Communications Corporation (NYSE:EVC) has announced that it will pay a dividend of $0.025 per share on the 30th of September. This payment means the dividend yield will be 1.9%, which is below the average for the industry.
See our latest analysis for Entravision Communications
Entravision Communications' Dividend Is Well Covered By Earnings
The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Before making this announcement, Entravision Communications was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.
Looking forward, earnings per share is forecast to rise by 129.9% over the next year. If the dividend continues on this path, the payout ratio could be 14% by next year, which we think can be pretty sustainable going forward.
Entravision Communications Doesn't Have A Long Payment History
Entravision Communications' dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. The annual payment during the last 9 years was $0.12 in 2013, and the most recent fiscal year payment was $0.10. Doing the maths, this is a decline of about 2.0% per year. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges.
We Could See Entravision Communications' Dividend Growing
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. We are encouraged to see that Entravision Communications has grown earnings per share at 8.5% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Entravision Communications' prospects of growing its dividend payments in the future.
We Really Like Entravision Communications' Dividend
Overall, we like to see the dividend staying consistent, and we think Entravision Communications might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 3 warning signs for Entravision Communications that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield 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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