Yahoo Finance Bird Construction (TSE:BDT) Has Re-Affirmed Its Dividend Of CA$0.033
Bird Construction Inc. (TSE:BDT) will pay a dividend of CA$0.033 on the 20th of January. Based on this payment, the dividend yield on the company's stock will be 4.1%, which is an attractive boost to shareholder returns.
Check out our latest analysis for Bird Construction
Bird Construction's Payment Has Solid Earnings Coverage
If the payments aren't sustainable, a high yield for a few years won't matter that much. However, Bird Construction's earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.
Looking forward, earnings per share is forecast to fall by 0.05% over the next year. If the dividend continues along the path it has been on recently, we estimate the payout ratio could be 34%, which is comfortable for the company to continue in the future.
Bird Construction's Track Record Isn't Great
The dividend is currently lower than it was 10 years ago, indicating that there has been a downward trend over that time. The dividend has gone from CA$0.66 in 2011 to the most recent annual payment of CA$0.39. Doing the maths, this is a decline of about 5.1% per year. A company that decreases its dividend over time generally isn't what we are looking for.
We Could See Bird Construction's Dividend Growing
Dividends have been going in the wrong direction, so we definitely want to see a different trend in the earnings per share. It's encouraging to see Bird Construction has been growing its earnings per share at 6.6% a year over the past five years. Bird Construction definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
Bird Construction Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think Bird Construction might even raise payments in the future. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 9 analysts we track are forecasting for Bird Construction for free with public analyst estimates for the company. We have also put together a list of global stocks with a solid dividend.
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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.
