Robert Half International (NYSE:RHI) Is Increasing Its Dividend To $0.48
Robert Half International Inc.'s (NYSE:RHI) dividend will be increasing from last year's payment of the same period to $0.48 on 15th of June. This will take the dividend yield to an attractive 2.8%, providing a nice boost to shareholder returns.
View our latest analysis for Robert Half International
Robert Half International's Earnings Easily Cover The Distributions
Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, prior to this announcement, Robert Half International's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business.
Over the next year, EPS is forecast to expand by 17.0%. If the dividend continues on this path, the payout ratio could be 30% by next year, which we think can be pretty sustainable going forward.
Robert Half International Has A Solid Track Record
The company has an extended history of paying stable dividends. The dividend has gone from an annual total of $0.60 in 2013 to the most recent total annual payment of $1.92. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.
The Dividend Looks Likely To Grow
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 Robert Half International has grown earnings per share at 18% per year over the past five years. Robert Half International definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
We Really Like Robert Half International's Dividend
Overall, a dividend increase is always good, and we think that Robert Half International is a strong income stock thanks to its track record and growing earnings. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 1 warning sign for Robert Half International that investors should know about before committing capital to this stock. Is Robert Half International not quite the opportunity you were looking for? Why not check out our selection of top 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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