Linde's Dividend Increase Raises Sustainability Concerns
Linde plc's upcoming dividend increase of $1.50, representing a 7.9% increase from last year's $1.39, is a positive step for investors. However, the annual payment of 1.2% of the current stock price is below industry averages, and it remains to be seen whether higher levels of dividend payment would be sustainable. The company's track record of growing earnings per share at 28% per year over the past five years is a promising indicator of its ability to support future dividend growth.
- The sustainability of Linde's high-growth model will be crucial in maintaining its dividend payments, as excessive payout ratios can lead to erosion of earnings power.
- How will Linde's management plan for reinvesting its earnings into the business impact its long-term dividend potential and overall stock performance?