A.G. BARR (LON:BAG) Increases Dividend Payment to £0.124 Compared to Last Year

A.G. BARR p.l.c. (LON:BAG) has announced an increase in its dividend payment to £0.124 on the 7th of June, up from last year’s payment for the same period. This brings the annual payment to 2.7% of the current stock price, which is in line with industry averages.

The company’s dividend is well covered by earnings, with the last dividend easily covered by A.G. BARR’s earnings. This indicates that a significant portion of earnings are being retained to fuel business growth. Looking ahead, EPS is forecasted to expand by 30.4% over the next year, suggesting a sustainable payout ratio of 33% by next year.

While A.G. BARR has a long dividend track record, there have been fluctuations in the past, including cuts. The dividend has grown at a rate of 4.2% per annum over the years, but investors should be cautious due to past issues.

Despite the recent dividend increase, the company’s earnings per share has been relatively flat over the past five years, growing at a modest rate of 1.9% per annum. This could limit the dividend’s growth prospects in the future.

Overall, the dividend increase is a positive sign, but investors should remain cautious due to the company’s history of dividend fluctuations. It’s important for investors to consider a range of factors beyond just dividend payments when analyzing a company.