Klingelnberg (VTX:KLIN) Will Pay A Dividend Of €0.50
Klingelnberg AG (VTX:KLIN) has announced that it will pay a dividend of €0.50 per share on the 27th of August. Based on this payment, the dividend yield on the company's stock will be 3.9%, which is an attractive boost to shareholder returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. A big dividend yield for a few years doesn't mean much if it can't be sustained. The last dividend was quite easily covered by Klingelnberg's earnings. This means that a large portion of its earnings are being retained to grow the business. Over the next year, EPS is forecast to expand by 32.1%. If the dividend continues on this path, the payout ratio could be 29% by next year, which we think can be pretty sustainable going forward. SWX:KLIN Historic Dividend July 3rd 2025 See our latest analysis for Klingelnberg Klingelnberg has been paying dividends for a while, but the track record isn't stellar. This suggests that the dividend might not be the most reliable. Since 2019, the annual payment back then was €0.897, compared to the most recent full-year payment of €0.533. Doing the maths, this is a decline of about 8.3% per year. A company that decreases its dividend over time generally isn't what we are looking for. Given that dividend payments have been shrinking like a glacier in a warming world, we need to check if there are some bright spots on the horizon. We are encouraged to see that Klingelnberg has grown earnings per share at 56% per year over the past five years. Klingelnberg is clearly able to grow rapidly while still returning cash to shareholders, positioning it to become a strong dividend payer in the future. In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 3 warning signs for Klingelnberg that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.