SpartanNash Company (NASDAQ:SPTN) is set to distribute a payment of $0.215 per share to its investors on December 29th, adding to a solid dividend yield of 3.9%. The dividend payment reflects the company’s commitment to providing attractive returns to its shareholders. While the payment history and sustainability of the dividend are crucial considerations for investors, it’s also essential to analyze other factors that may impact the stock’s performance.
SpartanNash Has a Solid Earnings Coverage
The recent payment indicates that SpartanNash’s earnings comfortably cover the dividend. The company’s earnings-per-share (EPS) is projected to expand by an impressive 122.4% over the next year. This positive forecast suggests that the payout ratio, currently at a sustainable 34%, could keep the dividend well-supported.
SpartanNash Demonstrates Stability in Dividend Distribution
Over the past decade, SpartanNash has maintained a remarkably stable distribution of dividends. From $0.32 per share in 2013, the annual payment has grown to $0.86 in the most recent fiscal year. This consistent upward momentum provides assurance that future dividend payments will likely continue to be reliable.
Considerations for the Dividend’s Growth Potential
While SpartanNash’s dividend payment history is promising, investors should take note of the company’s declining earnings. Over the last five years, EPS has decreased by 12%, indicating potential challenges ahead. Although earnings are predicted to rise in the coming year, it is wise to remain cautious until a sustained track record of growth can be established.
In conclusion, SpartanNash presents itself as a solid dividend stock, but investors should be mindful of its declining earnings. While the current dividend appears sustainable, it is crucial to recognize that the company has pushed the boundaries of sustainability in the past. As always, it is important for investors to conduct thorough analysis and assess the company’s long-term potential before making any investment decisions.
1. What is SpartanNash’s dividend yield?
SpartanNash offers a dividend yield of 3.9%, providing attractive returns for its investors.
2. Is SpartanNash’s dividend payment sustainable?
Based on the company’s solid earnings coverage and projected EPS growth, the current dividend payment appears sustainable. However, investors should monitor the company’s earnings performance over time.
3. Has SpartanNash consistently paid dividends?
Yes, SpartanNash has a long history of stable dividend distributions. Over the last decade, the annual payment has shown consistent growth, indicating the company’s commitment to rewarding its shareholders.
4. What should investors consider regarding SpartanNash’s dividend growth potential?
Investors should be cautious of SpartanNash’s declining earnings over the past five years. Although earnings are expected to rise in the coming year, a sustained track record of earnings growth would provide more confidence in the company’s ability to increase its dividend in the future.