Duxton Water (ASX:D2O) Raises Dividend Payout Amid Growth Concerns
Duxton Water Limited (ASX:D2O) has announced a 3.1% increase in its periodic dividend to A$0.0371, which will be 5.6% of the stock price. This move comes as the company is forecast to see a 37.3% rise in earnings per share over the next year, driven by rapid growth. However, the high cash payout ratio of 192% of free cash flows and minimal retained earnings cast doubt on the sustainability of this dividend.
- The swift increase in dividend payout may be seen as a vote of confidence from management, but it also raises concerns about the company's ability to maintain this pace amidst growing competition and potential market downturns.
- How will Duxton Water's high-growth strategy impact its dividend payments in the face of increasing expenses and potentially lower profits in the future?