Alright, folks, gather ’round! Your friendly neighborhood spending sleuth, Mia, is on the case. Today, we’re ditching the discount racks and diving headfirst into the world of… *drumroll* …dividends! Yeah, yeah, I know, sounds about as exciting as watching paint dry, but trust me, even this mall mole can sniff out a good deal. And lately, I’ve been sniffing around the financial scent trail of MS INTERNATIONAL (LON:MSI), a company that seems to be handing out cash like it’s Black Friday. So, grab your magnifying glasses (or, you know, your reading glasses), and let’s crack this financial mystery wide open.
This isn’t about the latest must-have bag (believe me, I’ve seen it all), it’s about something potentially more lucrative: a steady stream of cash flowing directly into your pockets. And that, my friends, is the sweet siren song of a good dividend. MS INTERNATIONAL is, apparently, singing that song loud and clear, with a recent announcement of a final dividend increase to UK£0.18 per share. Now, that might not sound like enough to buy a whole lotta lattes, but trust me, it adds up. We’re talking a history of growth, a commitment to shareholders, and a possible sign of some smart folks steering the ship. So, let’s dig into the details and see if this company is truly a treasure or just a cleverly disguised clearance rack.
First things first, let’s talk numbers, because let’s face it, that’s what this whole game is about. We are going to dive into the dividend performance, which is a key factor that will prove whether the dividend is good and safe.
The company has been pretty good at hiking its payments. We’re talking about a dividend history that, while it has had some bumps in the road, primarily points upwards. The dividend has seen a decent compound annual growth rate (CAGR) – somewhere between 1.5% and 10%, depending on what time frame you’re peering at. Back in 2012, you would have gotten a mere £0.08 per share annually. Fast forward to today, and we’re looking at £0.215 recently, with projections heading towards £0.22. That is the kind of growth we like to see, and that shows the board is making shareholders happy.
And let’s get this straight: this isn’t just a one-off fluke. The most recent increase to £0.18, effective August 22nd, represents a pretty solid 9.1% jump from the previous year. Let’s not forget the previous increase to £0.165, which yielded 1.8%, putting it in line with industry averages. Now, a good dividend is a good signal that the company is making money and that they are happy to share it.
But hey, even this old mall mole knows a thing or two. A couple of dividend cuts in the past are a big red flag, it signals the company is being more cautious, and prioritizing its financials. You’ve got to consider the possibility that tough times could be on the horizon, and these cuts are a good indication that we need to approach this situation with a bit of caution.
So, is MS INTERNATIONAL just a flash-in-the-pan, or can it keep the cash flowing? The answer, as always, lies in the numbers. We need to understand if this dividend is *sustainable*. To do that, we have to look at the *payout ratio*. This tells us how much of the company’s earnings are being dished out as dividends. A lower payout ratio is generally better. MS INTERNATIONAL is sitting pretty at 36.1%. This is excellent news; the company is reinvesting a healthy chunk of its earnings. This gives it a cushion against tough times and allows for future dividend increases.
The dividend yield – how much return you get based on the stock price – is sitting around 1.9% to 2.4%. It’s not going to make you rich overnight, but it’s still respectable, particularly when compared to the industry average. We’re also seeing some nice growth in Earnings Per Share (EPS). EPS has jumped from UK£0.71 in FY2024 to UK£0.90. Basically, the company is making more money, and that’s what’s driving the dividend higher.
But wait, there’s more! (Because, hey, what’s a shopping trip without a few impulse buys?) Beyond the cold, hard numbers, there’s the bigger picture. MS INTERNATIONAL operates in the aerospace and defense industry, a sector that is known for long-term contracts. This means there is consistent demand, which contributes to the company’s appeal.
Now, let’s talk about what makes a company even more appealing. Good management, right? Recent analysis shows that MS INTERNATIONAL is investing its capital with increasing efficiency, and a significant portion of the company’s shares are held by individual insiders (54%), aligning their interests with those of other shareholders. We have to note that there is a good share price growth. Even the share price has experienced growth, with a 34% increase over the past year. This doesn’t just benefit those holding the shares, it also says that the company is doing well.
I’ll be keeping a close eye on the company’s upcoming financial results which will be released on August 4th. And mark your calendars, because just before those results drop, the ex-dividend date (the date you need to own the stock to get the dividend) is coming up, so investors looking for quick income need to be prepared. It’s all about timing, baby!
So, what’s the verdict? Is MS INTERNATIONAL a worthwhile addition to your dividend portfolio? Well, folks, it appears the answer is a tentative, but optimistic *yes*. This company has shown a commitment to returning value to shareholders, is operating in a stable industry, and has an efficient capital allocation. While always remembering that investing is a gamble. If you’re looking for a reliable, income-generating investment, MS INTERNATIONAL is worth a closer look.
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