EnerSys (NYSE:ENS) announced on Wednesday that it will be increasing its dividend from the same period last year to $0.225, payable on September 29th. Despite the increase, the yield remains at a modest 0.9%, falling below the industry average.
A significant portion of EnerSys' earnings have been reinvested back into the business. With an expected expansion in EPS of 27.5% over the next year, if the dividend continues on its current path, the payout ratio could be 12% by next year, suggesting a sustainable future for the company's distribution policy.
EnerSys has established a consistent record of paying dividends with minimal fluctuation. The annual total dividend has grown from $0.50 in 2013 to a recent total annual payment of $0.90, marking a steady growth rate of 6.1% per annum over that period.
Investors may find EnerSys attractive based on its strong payment history and growth in earnings per share (EPS), which has been increasing at 13% annually over the past five years. This growth in EPS is a positive indicator for the dividend, as is the company's current low payout ratio.
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