Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Stock Market»Caribbean Utilities Company (TSE:CUP.U) Is Paying Out A Dividend Of $0.185
    Stock Market

    Caribbean Utilities Company (TSE:CUP.U) Is Paying Out A Dividend Of $0.185

    February 26, 20254 Mins Read


    The board of Caribbean Utilities Company, Ltd. (TSE:CUP.U) has announced that it will pay a dividend of $0.185 per share on the 14th of March. Based on this payment, the dividend yield on the company’s stock will be 5.6%, which is an attractive boost to shareholder returns.

    See our latest analysis for Caribbean Utilities Company

    We like to see robust dividend yields, but that doesn’t matter if the payment isn’t sustainable. Before making this announcement, Caribbean Utilities Company was earning enough to cover the dividend, but it wasn’t generating any free cash flows. Since a dividend means the company is paying out cash to investors, this could prove to be a problem in the future.

    The next year is set to see EPS grow by 4.7%. If the dividend continues along recent trends, we estimate the payout ratio will be 72%, which is in the range that makes us comfortable with the sustainability of the dividend.

    historic-dividend
    TSX:CUP.U Historic Dividend February 26th 2025

    The dividend’s track record has been pretty solid, but with only 7 years of history we want to see a few more years of history before making any solid conclusions. The dividend has gone from an annual total of $0.68 in 2018 to the most recent total annual payment of $0.74. This implies that the company grew its distributions at a yearly rate of about 1.2% over that duration. It’s good to see at least some dividend growth. Yet with a relatively short dividend paying history, we wouldn’t want to depend on this dividend too heavily.

    Investors could be attracted to the stock based on the quality of its payment history. However, Caribbean Utilities Company has only grown its earnings per share at 3.2% per annum over the past five years. Caribbean Utilities Company is struggling to find viable investments, so it is returning more to shareholders. This isn’t bad in itself, but unless earnings growth pick up we wouldn’t expect dividends to grow either.

    We should note that Caribbean Utilities Company has issued stock equal to 11% of shares outstanding. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus – perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective.

    In summary, while it’s good to see that the dividend hasn’t been cut, we are a bit cautious about Caribbean Utilities Company’s payments, as there could be some issues with sustaining them into the future. With cash flows lacking, it is difficult to see how the company can sustain a dividend payment. We would be a touch cautious of relying on this stock primarily for the dividend income.

    It’s important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. To that end, Caribbean Utilities Company has 2 warning signs (and 1 which is a bit concerning) we think you should know about. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

    Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

    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.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Here Are My Top 3 High-Yield Energy Dividend Stocks to Buy Now

    Stock Market

    3 Highly-Rated Dividend Stocks You’ve Probably Never Heard Of (But Should)

    Stock Market

    Le président d’Ecofin Global Utilities annoncé son départ lors de la prochaine assemblée générale

    Stock Market

    United Utilities Group PLC : RBC Capital Markets de acheteur à neutre sur le titre

    Stock Market

    une boutique Voi va ouvrir au Havre

    Stock Market

    10 Best Dividend Stocks for a Bear Market

    Stock Market
    Leave A Reply Cancel Reply

    Top Picks
    Property

    Boston City Council may vote on Wu’s property tax compromise next week

    Stock Market

    Global Ship Lease (NYSE:GSL) Will Pay A Larger Dividend Than Last Year At $0.45

    Chenavari AM annonce que son fonds Chenavari Real Estate Decarbonisation Fund

    Editors Picks

    The Commodities Feed: Risk on after US and China lower tariffs | articles

    May 13, 2025

    Le cours de l’action Vistra Energy chute suite à un incendie dans une installation de batteries Par Investing.com

    January 17, 2025

    5 Types of Investments Expected To Soar in Value by the End of 2025

    July 26, 2024

    BoG hosts high-level fintech networking event in Washington DC

    October 24, 2024
    What's Hot

    Next Cryptocurrency to Explode, 6 May — BNB, Popcat, aixbt, Safe

    May 6, 2025

    Gold, silver price today, August 13, 2024: Precious metals witness dip on MCX

    August 13, 2024

    le méga projet E-CHO de e-carburants fait son bilan carbone

    February 8, 2025
    Our Picks

    Nigerian fintech, Woven Finance, reveals what caused shutdown miscommunication in January as it begins a brand refresh

    October 22, 2024

    Quirky house valued at £124,000 described as ‘stuff of nightmares’ for one awful reason

    July 17, 2024

    US Tariff: Crude oil futures drop on supply increase fears

    March 4, 2025
    Weekly Top

    A Brant County resident lost $18,500 in a cryptocurrency scam

    June 21, 2025

    Cameroun : 12 milliards USD pour raccorder 8 millions de personnes d’ici 2030, le pari de l’émergence énergétique

    June 21, 2025

    Wave Cameroun paiement • Révolution mobile

    June 21, 2025
    Editor's Pick

    3 European Dividend Stocks Yielding Up To 7.3%

    February 27, 2025

    How fintech is closing the gap on digital exclusion

    October 26, 2024

    10 Best Cryptocurrency Affiliate Programs of 2024 – Earn Passive Income

    October 27, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.