Yahoo Finance Mensch und Maschine Software's (ETR:MUM) Dividend Will Be Increased To €1.40
Mensch und Maschine Software SE's (ETR:MUM) periodic dividend will be increasing on the 16th of May to €1.40, with investors receiving 17% more than last year's €1.20. This will take the annual payment to 2.3% of the stock price, which is above what most companies in the industry pay.
Check out our latest analysis for Mensch und Maschine Software
Mensch und Maschine Software's Dividend Is Well Covered By Earnings
Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. The last payment made up 79% of earnings, but cash flows were much higher. This leaves plenty of cash for reinvestment into the business.
EPS is set to grow by 40.4% over the next year. Assuming the dividend continues along recent trends, our estimates say the payout ratio could reach 81% - on the higher side, but we wouldn't necessarily say this is unsustainable.
Mensch und Maschine Software Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. The dividend has gone from an annual total of €0.20 in 2013 to the most recent total annual payment of €1.20. This means that it has been growing its distributions at 20% per annum over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.
Mensch und Maschine Software's Dividend Might Lack Growth
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. It's encouraging to see that Mensch und Maschine Software has been growing its earnings per share at 26% a year over the past five years. Earnings per share is growing nicely, but the company is paying out most of its earnings as dividends. This might be sustainable, but we wonder why Mensch und Maschine Software is not retaining those earnings to reinvest in growth.
Our Thoughts On Mensch und Maschine Software's Dividend
Overall, this is a reasonable dividend, and it being raised is an added bonus. The dividend is easily covered by cash flows and has a good track record, but we think the payout ratio might be a bit high. The payment isn't stellar, but it could make a decent addition to a dividend portfolio.
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. Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 Mensch und Maschine Software analysts we track are forecasting continued growth with our free report on analyst estimates for the company. 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.
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