坎特伯雷帕克控股公司（NASDAQ:CPHC）將派發每股 0.07 美元的股息
Canterbury Park Holding Corporation (NASDAQ:CPHC) has announced a dividend payment of $0.07 per share, yielding 1.7%. However, the company's ability to maintain this dividend is questionable, as it previously constituted 941% of earnings and is generating negative free cash flows. EPS is projected to decline by 29.4% over the next year, leading to a potential payout ratio of 1,413%. The company's dividend history shows inconsistency, with a growth rate of only 1.3% since 2016, raising concerns about its sustainability as an income investment.
The board of Canterbury Park Holding Corporation (NASDAQ:CPHC) has announced that it will pay a dividend of $0.07 per share on the 14th of October. The dividend yield is 1.7% based on this payment, which is a little bit low compared to the other companies in the industry.
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Estimates Indicate Canterbury Park Holding's Could Struggle to Maintain Dividend Payments In The Future
It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Prior to this announcement, the dividend made up 941% of earnings, and the company was generating negative free cash flows. This high of a dividend payment could start to put pressure on the balance sheet in the future.
If the company can't turn things around, EPS could fall by 29.4% over the next year. If the dividend continues along the path it has been on recently, the payout ratio in 12 months could be 1,413%, which is definitely a bit high to be sustainable going forward.
View our latest analysis for Canterbury Park Holding
Canterbury Park Holding's Dividend Has Lacked Consistency
Canterbury Park Holding 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 2016, the annual payment back then was $0.25, compared to the most recent full-year payment of $0.28. This implies that the company grew its distributions at a yearly rate of about 1.3% over that duration. It's encouraging to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth anyway, which makes this less attractive as an income investment.
The Dividend Has Limited Growth Potential
With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Canterbury Park Holding's EPS has fallen by approximately 29% per year during the past five years. This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future.
We're Not Big Fans Of Canterbury Park Holding's Dividend
In summary, while it is good to see that the dividend hasn't been cut, we think that at current levels the payment isn't particularly sustainable. The company's earnings aren't high enough to be making such big distributions, and it isn't backed up by strong growth or consistency either. The dividend doesn't inspire confidence that it will provide solid income in the future.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. To that end, Canterbury Park Holding has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
