Hill & Smith Holdings PLC (LON:HILS) Is An Attractive Dividend Stock, Here’s Why
Over the past 10 years Hill & Smith Holdings PLC (LSE:HILS) has returned an average of 3.00% per year from dividend payouts. The company currently pays out a dividend yield of 2.29% to shareholders, making it a relatively attractive dividend stock. Let’s dig deeper into whether Hill & Smith Holdings should have a place in your portfolio. View our latest analysis for Hill & Smith Holdings
5 checks you should do on a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Does it consistently pay out dividends without missing a payment or significantly cutting payout?
Has dividend per share amount increased over the past?
Is it able to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
Does Hill & Smith Holdings pass our checks?
The company currently pays out 43.75% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect HILS’s payout to remain around the same level at 39.63% of its earnings, which leads to a dividend yield of around 2.48%. Furthermore, EPS should increase to £0.73. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. HILS has increased its DPS from £0.09 to £0.3 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 HILS a true dividend rockstar. Relative to peers, Hill & Smith Holdings produces a yield of 2.29%, which is on the low-side for Metals and Mining stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank Hill & Smith Holdings as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. Given that 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 relevant factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for HILS’s future growth? Take a look at our free research report of analyst consensus for HILS’s outlook.
Valuation: What is HILS 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 HILS is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
