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Yahoo Finance Plus Utah Medical Products (NASDAQ:UTMD) Will Pay A Dividend Of US$0.29
Utah Medical Products, Inc. (NASDAQ:UTMD) will pay a dividend of US$0.29 on the 5th of April. The dividend yield will be 3.1% based on this payment which is still above the industry average.
Check out our latest analysis for Utah Medical Products
Utah Medical Products' Payment Has Solid Earnings Coverage
A big dividend yield for a few years doesn't mean much if it can't be sustained. However, prior to this announcement, Utah Medical Products' dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow.
If the trend of the last few years continues, EPS will grow by 4.6% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio will be 69%, which is in the range that makes us comfortable with the sustainability of the dividend.
Utah Medical Products Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. Since 2012, the first annual payment was US$0.94, compared to the most recent full-year payment of US$1.14. This means that it has been growing its distributions at 1.9% per annum over that time. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.
Utah Medical Products May Find It Hard To Grow The Dividend
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, Utah Medical Products has only grown its earnings per share at 4.6% per annum over the past five years. If Utah Medical Products is struggling to find viable investments, it always has the option to increase its payout ratio to pay more to shareholders.
We Really Like Utah Medical Products' Dividend
Overall, we like to see the dividend staying consistent, and we think Utah Medical Products might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for Utah Medical Products that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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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.
