Amdocs (NASDAQ:DOX) Announces Dividend of $0.479

Amdocs Limited (NASDAQ:DOX) has recently announced that it will be paying a dividend of $0.479 per share on the 26th of July, with a dividend yield of 2.4%, in line with the industry average. This news comes as a positive development for investors, as the company’s dividend is well covered by its earnings.

Prior to the announcement, Amdocs was earning enough to comfortably cover the dividend, with a large portion of its earnings being reinvested back into the business. Looking ahead, the company is forecasted to see a 70.6% increase in EPS over the next year, which could result in a sustainable payout ratio of 26% by next year.

Amdocs has a solid track record when it comes to dividend payments, with distributions growing at a steady rate of 14% per annum since 2014. This consistent growth in dividends provides reassurance to investors that future payments will also be reliable.

Furthermore, the company has seen EPS rise by 12% per annum over the last five years, indicating potential for further dividend growth. With a low payout ratio and strong earnings, Amdocs is considered a strong income stock with a promising dividend outlook.

Overall, Amdocs’ dividend increase is seen as a positive sign for investors, highlighting the company’s strong track record and growing earnings. This news is likely to attract investors looking for a reliable income stock with potential for future growth.