Yahoo Finance Heidrick & Struggles International (NASDAQ:HSII) Is Paying Out A Dividend Of $0.15
The board of Heidrick & Struggles International, Inc. (NASDAQ:HSII) has announced that it will pay a dividend on the 23rd of May, with investors receiving $0.15 per share. This means that the annual payment will be 1.9% of the current stock price, which is in line with the average for the industry.
Check out our latest analysis for Heidrick & Struggles International
Heidrick & Struggles International's Dividend Is Well Covered By Earnings
We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. However, prior to this announcement, Heidrick & Struggles International's dividend was comfortably covered by both cash flow and earnings. As a result, a large proportion of what it earned was being reinvested back into the business.
Over the next year, EPS is forecast to expand by 3.8%. If the dividend continues on this path, the payout ratio could be 23% by next year, which we think can be pretty sustainable going forward.
Heidrick & Struggles International Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. Since 2014, the annual payment back then was $0.52, compared to the most recent full-year payment of $0.60. This works out to be a compound annual growth rate (CAGR) of approximately 1.4% a year over that time. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.
The Dividend's Growth Prospects Are Limited
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. However, initial appearances might be deceiving. However, Heidrick & Struggles International's EPS was effectively flat over the past five years, which could stop the company from paying more every year.
Our Thoughts On Heidrick & Struggles International's Dividend
Overall, we think Heidrick & Struggles International is a solid choice as a dividend stock, even though the dividend wasn't raised this year. The earnings coverage is acceptable for now, but with earnings on the decline we would definitely keep an eye on the payout ratio. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for Heidrick & Struggles International that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield 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.
