U.S. markets closed
  • S&P Futures

    3,900.00
    -3.75 (-0.10%)
     
  • Dow Futures

    31,408.00
    -13.00 (-0.04%)
     
  • Nasdaq Futures

    12,022.75
    -17.75 (-0.15%)
     
  • Russell 2000 Futures

    1,769.70
    -0.10 (-0.01%)
     
  • Crude Oil

    110.66
    +1.09 (+0.99%)
     
  • Gold

    1,826.80
    +2.00 (+0.11%)
     
  • Silver

    21.13
    -0.04 (-0.18%)
     
  • EUR/USD

    1.0586
    0.0000 (-0.00%)
     
  • 10-Yr Bond

    3.1940
    +0.0690 (+2.21%)
     
  • Vix

    26.95
    -0.28 (-1.03%)
     
  • GBP/USD

    1.2278
    +0.0008 (+0.07%)
     
  • USD/JPY

    135.3090
    -0.1370 (-0.10%)
     
  • BTC-USD

    20,713.53
    -418.74 (-1.98%)
     
  • CMC Crypto 200

    449.97
    -11.83 (-2.56%)
     
  • FTSE 100

    7,258.32
    +49.51 (+0.69%)
     
  • Nikkei 225

    26,898.62
    +27.35 (+0.10%)
     

WSP Global (TSE:WSP) Has Affirmed Its Dividend Of CA$0.38

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

WSP Global Inc. (TSE:WSP) has announced that it will pay a dividend of CA$0.38 per share on the 15th of July. This means the dividend yield will be fairly typical at 1.0%.

See our latest analysis for WSP Global

WSP Global's Earnings Easily Cover the Distributions

Solid dividend yields are great, but they only really help us if the payment is sustainable. Before making this announcement, WSP Global was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 14.2%. If the dividend continues on this path, the payout ratio could be 32% by next year, which we think can be pretty sustainable going forward.

historic-dividend
historic-dividend

Dividend Volatility

While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The first annual payment during the last 10 years was CA$2.05 in 2012, and the most recent fiscal year payment was CA$1.50. The dividend has shrunk at around 3.1% a year during that period. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. WSP Global has seen EPS rising for the last five years, at 14% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

We Really Like WSP Global's Dividend

Overall, we like to see the dividend staying consistent, and we think WSP Global 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.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 14 analysts we track are forecasting for WSP Global for free with public analyst estimates for the company. Is WSP Global not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.