4/3/2023 0 Comments Ivinci payments![]() All in all, this checks a lot of the boxes we look for when choosing an income stock. Earnings are easily covering distributions, and the company is generating plenty of cash. Overall, a dividend increase is always good, and we think that Vinci is a strong income stock thanks to its track record and growing earnings. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders. ![]() ![]() Vinci has seen EPS rising for the last five years, at 8.9% per annum. Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. We have seen cuts in the past, so while the growth looks promising we would be a little bit cautious about its track record. This implies that the company grew its distributions at a yearly rate of about 8.5% over that duration. Since 2013, the annual payment back then was €1.77, compared to the most recent full-year payment of €4.00. The company has a long dividend track record, but it doesn't look great with cuts in the past. ENXTPA:DG Historic Dividend February 12th 2023 Dividend Volatility Assuming the dividend continues along recent trends, we think the payout ratio could be 50% by next year, which is in a pretty sustainable range. Over the next year, EPS is forecast to expand by 13.6%. This indicates that quite a large proportion of earnings is being invested back into the business. Prior to this announcement, Vinci's dividend was comfortably covered by both cash flow and earnings. We aren't too impressed by dividend yields unless they can be sustained over time. See our latest analysis for Vinci Vinci's Payment Has Solid Earnings Coverage This takes the annual payment to 3.8% of the current stock price, which is about average for the industry. ![]() Vinci SA ( EPA:DG) will increase its dividend from last year's comparable payment on the 27th of April to €3.00. ![]()
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