Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see The TJX Companies, Inc. (NYSE:TJX) is about to trade ex-dividend in the next four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, TJX Companies investors that purchase the stock on or after the 15th of May will not receive the dividend, which will be paid on the 6th of June.
The company's upcoming dividend is US$0.375 a share, following on from the last 12 months, when the company distributed a total of US$1.50 per share to shareholders. Calculating the last year's worth of payments shows that TJX Companies has a trailing yield of 1.5% on the current share price of US$98.91. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether TJX Companies has been able to grow its dividends, or if the dividend might be cut.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. That's why it's good to see TJX Companies paying out a modest 34% of its earnings. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. Fortunately, it paid out only 34% of its free cash flow in the past year.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:TJX Historic Dividend May 10th 2024
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. This is why it's a relief to see TJX Companies earnings per share are up 9.9% per annum over the last five years. Management have been reinvested more than half of the company's earnings within the business, and the company has been able to grow earnings with this retained capital. We think this is generally an attractive combination, as dividends can grow through a combination of earnings growth and or a higher payout ratio over time.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, TJX Companies has lifted its dividend by approximately 18% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
Final Takeaway
From a dividend perspective, should investors buy or avoid TJX Companies? Earnings per share growth has been growing somewhat, and TJX Companies is paying out less than half its earnings and cash flow as dividends. This is interesting for a few reasons, as it suggests management may be reinvesting heavily in the business, but it also provides room to increase the dividend in time. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and TJX Companies is halfway there. Overall we think this is an attractive combination and worthy of further research.
So while TJX Companies looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Our analysis shows 2 warning signs for TJX Companies and you should be aware of these before buying any shares.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
普通读者会知道我们喜欢Simply Wall St的股息,这就是为什么看到TJX公司(纽约证券交易所代码:TJX)即将在未来四天内进行除息交易令人兴奋的原因。除息日发生在记录日期的前一天,即股东需要在公司账簿上登记才能获得股息的日子。除息日是需要注意的重要日期,因为在该日或之后购买的任何股票都可能意味着延迟结算,而结算日期并未显示在记录日期。因此,在5月15日当天或之后购买股票的TJX Companies投资者将不会获得股息,股息将在6月6日支付。
该公司即将派发的股息为每股0.375美元,此前该公司向股东共分配了每股1.50美元。计算去年的付款额显示,TJX公司的尾随收益率为1.5%,而目前的股价为98.91美元。我们喜欢看到公司派发股息,但同样重要的是要确保产下金蛋不会杀死我们的金鹅!因此,读者应始终检查TJX Companies是否能够增加其股息,或者是否可能削减股息。
股息通常由公司收益支付。如果一家公司支付的股息超过其利润,那么分红可能是不可持续的。这就是为什么看到TJX公司仅支付其收益的34%是件好事。然而,对于评估股息而言,现金流比利润更为重要,因此我们需要查看公司是否产生了足够的现金来支付分红。幸运的是,在过去的一年中,它仅支付了自由现金流的34%。
令人鼓舞的是,股息由利润和现金流共同支付。这通常表明,只要收益不急剧下降,股息是可持续的。
点击此处查看该公司的派息率,以及分析师对其未来股息的估计。
纽约证券交易所:TJX 历史股息 2024 年 5 月 10 日
收益和股息一直在增长吗?
增长前景强劲的企业通常是最佳的股息支付者,因为当每股收益改善时,更容易增加股息。投资者喜欢分红,因此,如果收益下降而股息减少,预计股票将同时被大量抛售。这就是为什么TJX公司的每股收益在过去五年中每年增长9.9%令人欣慰的原因。管理层已将公司一半以上的收益再投资于该业务,公司得以利用这笔留存资本增加收益。我们认为这通常是一个有吸引力的组合,因为随着时间的推移,收益增长和/或更高的派息率相结合,股息可以增长。
大多数投资者评估公司股息前景的主要方式是查看历史股息增长率。在过去的10年中,TJX公司的股息平均每年提高约18%。令人鼓舞的是,该公司在收益增长的同时提高了股息,这表明至少有一部分企业有兴趣奖励股东。
最后的外卖
从股息的角度来看,投资者应该买入还是避开TJX公司?每股收益有所增长,TJX Companies将不到一半的收益和现金流作为股息支付。这很有趣,原因有很多,因为这表明管理层可能正在对业务进行大量再投资,但它也为及时增加股息提供了空间。我们希望看到收益更快地增长,但从长远来看,最好的股息股票通常将每股收益的显著增长与较低的派息率相结合,而TJX Companies已经到了一半。总的来说,我们认为这是一个有吸引力的组合,值得进一步研究。
因此,尽管从股息的角度来看,TJX Companies看起来不错,但了解该股票所涉及的最新风险总是值得的。我们的分析显示TJX公司有两个警告信号,在购买任何股票之前,您应该注意这些信号。
通常,我们不建议只购买你看到的第一只股息股票。以下是精选的具有强大股息支付能力的有趣股票清单。
对这篇文章有反馈吗?对内容感到担忧吗?请直接联系我们。或者,也可以发送电子邮件至编辑团队 (at) simplywallst.com。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。