Intuit's next dividend payment will be $ 0.53 per share. The company has paid a total of $ 2.12 per share in the past 12 months. Based on the value of last year's payments, Intuit has a 0.8% follow-up yield on its current share price of $ 264.38. Dividends are an important source of income for many shareholders, but the health of the company is critical to maintaining these dividends. So we have to check whether the dividend payments are covered and whether the result grows.
<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = " Check out our latest Intuit analysis "data-reactid =" 29 "> Check out our latest Intuit analysis
Dividends are usually paid out of company profits. If a company pays more dividends than it earns in profit, the dividend cannot be sustainable. For this reason, it's good to see Intuit pay a modest 32% of its earnings. A useful secondary review can be to assess whether Intuit has generated enough free cash flow to pay the dividend. Fortunately, it only paid out 24% of its free cash flow last year.
It is positive to see that Intuit's dividend is covered by both profits and cash flow, as this is generally a sign of the sustainability of the dividend and a lower payout ratio usually suggests a larger margin of safety before a cut in the dividend ,
<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Click Here you can see the company's payout ratio and analyst estimates of its future dividends."data-reactid =" 32 "> Click here to see the company's payout ratio and analyst estimates of its future dividends.
Are income and dividends growing?
Shares in companies that generate sustained earnings growth often offer the best dividend prospects because it is easier to increase the dividend as earnings grow. If the business goes into a downturn and the dividend is lowered, the value of the company could drop dramatically. For this reason, we are pleased that Intuit's earnings per share have increased by 15% per year over the past five years. The company has managed to increase profits quickly while reinvesting most of the profits within the business. This makes it easier to finance future growth efforts and we consider this an attractive combination – and the dividend can be increased at any time later.
Another key to measuring a company's dividend prospects is measuring the historical growth rate of dividends. Over the past eight years, Intuit has increased the dividend on average by 17% a year. Both earnings per share and dividend have risen rapidly recently, which is impressive.
Should investors buy or avoid Intuit from a dividend perspective? Intuit saw rapid earnings growth and a conservatively low payout ratio, which means the company is reinvesting heavily in its business. a sterling combination. Intuit looks solid overall with this analysis, and we would definitely consider a closer look.
<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Curious about what other investors think of Intuit? Use this visualization of historical and future estimated profits and cash flows to see what forecasts the analysts have, "data-reactid =" 50 "> Curious about what other Intuit investors think, see what analysts are predicting with this visualization of historical and future estimated earnings and cash flow.
<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "We would not recommend buying only the first dividend stock but see. Here is a list of interesting dividend stocks with a yield of more than 2% and an upcoming dividend."data-reactid =" 51 "> However, we would not recommend buying only the first dividend stock you see, here is a list of interesting dividend stocks with a yield of more than 2% and an upcoming dividend.
We strive to provide you with long-term, focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Thank you for reading."data-reactid =" 56 ">If you discover an error that justifies a correction, please contact the editorial team at email@example.com. This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the stocks mentioned.
We strive to provide you with long-term, focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Thank you for reading.