Yahoo Finance Taylor Maritime Investments (LON:TMI) Will Pay A Dividend Of $0.02
The board of Taylor Maritime Investments Limited (LON:TMI) has announced that it will pay a dividend on the 31st of May, with investors receiving $0.02 per share. Based on this payment, the dividend yield on the company's stock will be 8.1%, which is an attractive boost to shareholder returns.
View our latest analysis for Taylor Maritime Investments
Taylor Maritime Investments Might Find It Hard To Continue The Dividend
We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. The company is paying out a large amount of its cash flows, even though it isn't generating any profit. This is quite a strong warning sign that the dividend may not be sustainable.
Over the next year, EPS might fall by 177.0% based on recent performance. This means the company won't be turning a profit, which could place managers in the tough spot of having to choose between suspending the dividend or putting more pressure on the balance sheet.
Taylor Maritime Investments Doesn't Have A Long Payment History
The dividend hasn't seen any major cuts in the past, but the company has only been paying a dividend for 2 years, which isn't that long in the grand scheme of things. Since 2022, the annual payment back then was $0.07, compared to the most recent full-year payment of $0.08. This implies that the company grew its distributions at a yearly rate of about 6.9% over that duration. Taylor Maritime Investments has a nice track record of dividend growth but we would wait until we see a longer track record before getting too confident.
Dividend Growth Potential Is Shaky
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Unfortunately things aren't as good as they seem. Taylor Maritime Investments has seen EPS fall by 177% over the last 12 months. Decreases in earnings as large as this could start to put some pressure on the dividend if they are sustained for several years. However, we would never make any decisions based on only a single year of data, especially when assessing long term dividend potential.
Taylor Maritime Investments' Dividend Doesn't Look Great
Overall, while some might be pleased that the dividend wasn't cut, we think this may help Taylor Maritime Investments make more consistent payments in the future. The company isn't making enough to be paying as much as it is, and the other factors don't look particularly promising either. We don't think that this is a great candidate to be an income stock.
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 3 warning signs for Taylor Maritime Investments 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.
