WashTec (ETR:WSU) Has Announced That It Will Be Increasing Its Dividend To €2.40
The board of WashTec AG ( ETR:WSU ) has announced that the dividend on 16th of May will be increased to €2.40, which is a significant jump from last year's payment of €2.20 and represents a 9.1% increase. This move should please shareholders, who now enjoy a dividend yield of 5.5%. The company's cash flows appear robust enough to cover the increased dividend payment.
- The fact that WashTec's profits did not cover the previous year's dividend payment but rather relied on generating sufficient cash flow raises concerns about the long-term sustainability of this dividend policy.
- What implications will this dividend increase have for WashTec's ability to maintain its payout ratio in future years, and how might it impact investor expectations?