Dunelm Group (LON:DNLM) Could Be A Buy For Its Upcoming Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Dunelm Group plc (LON:DNLM) is about to go ex-dividend in just three days. The company's next dividend payment will be UK£0.515 per share, and in the last 12 months, the company paid a total of UK£0.79 per share, indicating a trailing yield of 8.2% on its current share price of UK£9.62. This dividend payout is also covered by both profits and cash flow, suggesting that it is sustainable.
- Dunelm Group's decision to maintain a high dividend payout ratio may be seen as a vote of confidence in the company's ability to generate consistent earnings and cash flow, which could be a positive indicator for investors seeking stable income.
- How will Dunelm Group's focus on reinvesting profits in its business balance out the potential trade-off with slower growth in revenue and market value over time?