Universal Logistics Holdings' (NASDAQ:ULH) Dividend Will Be $0.105
Shareholders of Universal Logistics Holdings, Inc. (NASDAQ: ULH) will be provided a payout of $0.105 for each share they own on October 2nd. This payout amounts to 1.5% of the current stock price, a percentage that is consistent with the industry average.
Take a look at our most recent evaluation of Universal Logistics Holdings.
Universal Logistics' Dividend Covered By Earnings
If the payments cannot be maintained steadily, the dividend return is not very significant. Nonetheless, before this declaration, Universal Logistics Holdings' dividend was adequately supported by both the cash flow and profits it generated. Consequently, a significant portion of its earnings was being reinvested into the company.
In the upcoming year, experts predict a 1.0% decrease in EPS. Assuming the dividend maintains its current trend, we anticipate the payout ratio to reach 9.1%, guaranteeing the company's stability moving forward.
Despite having a lengthy record of distributing dividends, the company experienced a reduction in its dividend rate at least once within the past decade. In 2013, the annual payment stood at $1.00, whereas the most recent payout for the fiscal year reached $0.42. By crunching the numbers, we can observe a gradual decrease of approximately 8.3% each year. It is worth noting that a company that consistently lowers its dividend is typically not aligned with our preferences.
Dividend Growth Ahead
The payouts have been moving in the opposite direction, therefore we're keen on witnessing a contrasting pattern in the earnings per share. It's promising to observe that Universal Logistics Holdings has successfully increased its earnings per share by 23% annually in the last five years. The earnings per share growth is steady, and the ratio of payouts is low, which we consider a perfect blend in a dividend stock as it allows the company to effortlessly enhance the dividend in the future.
We Love Universal Logistics Dividend!
In general, we prefer to observe the dividend remaining stable, and we believe that Universal Logistics Holdings may even increase payouts in the future. The profits comfortably cover the company's distributions, and the company is producing a significant amount of money. If earnings decline in the upcoming year, the dividend may experience some slight turbulence, but we don't anticipate it posing a major issue in the grand scheme of things. Considering all of these factors, we believe this stock has strong potential as a dividend investment.
Investors typically prefer companies that maintain a steady and reliable dividend policy compared to those that have an inconsistent approach. However, while dividend payments are important, they should not be the sole focus when evaluating a company. For instance, we have identified three cautionary signals for Universal Logistics Holdings that you should be mindful of, and one of them is somewhat unfavorable. If Universal Logistics Holdings doesn't meet your expectations, perhaps you may be interested in exploring our assortment of high-yielding stocks.
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This blog post from Simply Wall St is written in a broad and general manner. We offer observations based on past information and predictions made by analysts. Our approach is unbiased and our articles should not be considered as financial guidance. They should not be viewed as a suggestion to purchase or sell any stocks, and they do not account for your personal goals or financial circumstances. Our goal is to present you with analysis that is centered around long-term perspectives and driven by fundamental data. Please take note that our analysis may not take into account the most recent company announcements or qualitative information that may affect stock prices. It is important to mention that Simply Wall St does not hold any positions in the stocks mentioned in this article.
