Utah Medical Products (NASDAQ:UTMD) Has Affirmed Its Dividend Of $0.30
Utah Medical Products, Inc. (NASDAQ:UTMD) has announced that it will pay a dividend of $0.30 per share on the 3rd of January. This means the dividend yield will be fairly typical at 1.5%.
View our latest analysis for Utah Medical Products
Utah Medical Products' Earnings Easily Cover The Distributions
We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Before making this announcement, Utah Medical Products 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 could rise by 6.6% over the next year if the trend from the last few years continues. If the dividend continues on this path, the payout ratio could be 24% by next year, which we think can be pretty sustainable going forward.
Utah Medical Products Has A Solid Track Record
The company has an extended history of paying stable dividends. The dividend has gone from an annual total of $0.98 in 2013 to the most recent total annual payment of $1.20. This implies that the company grew its distributions at a yearly rate of about 2.0% over that duration. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.
We Could See Utah Medical Products' Dividend Growing
The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Utah Medical Products has grown earnings per share at 6.6% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Utah Medical Products' prospects of growing its dividend payments in the future.
We Really Like Utah Medical Products' Dividend
In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. 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.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. Are management backing themselves to deliver performance? Check their shareholdings in Utah Medical Products in our latest insider ownership analysis. Is Utah Medical Products not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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