Sepura Stock Amongst the Safest Dividents Around
Analysts in the UK believe that Sepura’s earnings per share will grow by 12% this year and then a further 18% during 2016.
Buying shares that offer a regular dividend payout can be an excellent way to supplement your annual income. However, not all dividends are created equal, and some payouts are more secure than others. And it pays to do your research before buying a company for its dividends. Most of the time, when a dividend payout is cut, it is cut without much warning.
Unfortunately, it’s not possible to accurately predict every dividend cut before it happens, but you can reduce the risk of being caught by surprise.
With that in mind, communications specialist Sepura (LSE: SEPU) has reported rapid earnings growth over the past five years. Although, unfortunately, this has not translated into dividend growth. Sepura’s earnings per share have risen four-fold since 2011. Further growth is expected in the years ahead. City analysts believe that Sepura’s earnings per share will grow by 12% this year and then a further 18% during 2016. This kind of growth doesn’t come cheap. Sepura is currently trading at a forward P/E of 21.7.
What’s more, Sepura’s dividend yield of 1.4% leaves much to be desired. However, as the dividend payout is covered 3.6 times by earnings per share, it looks to be one of the safest around.
