Highlights
- Quebecor's dividend will increase by 7.7% in April.
- Dividend yield aligns with the industry average.
- Expect continued dividend stability and growth.
Quebecor Inc. (TSX:QBR.A) is set to increase its periodic dividend to CA$0.35 on April 8th, marking a 7.7% rise from last year's CA$0.325. This boost aligns its dividend yield with the industry average at approximately 3.8%.
Quebecor’s Comfort with Future Dividends
The upcoming increase and the dividend's alignment with industry standards offer a reassuring outlook for investors. Quebecor’s previous dividend payments were easily covered by its earnings, allowing the company to retain profits for further growth. Assuming current trends persist, Quebecor’s Earnings Per Share (EPS) could rise by 8.2% over the next year, maintaining a sustainable payout ratio of about 49%.
A Solid Dividend Track Record
Quebecor has demonstrated a stable dividend history. Since 2015, the annual dividend has climbed from CA$0.05 to CA$1.30, reflecting a robust compound annual growth rate (CAGR) of approximately 39% each year. This stability and growth trajectory inspire confidence in the company’s ability to maintain reliable future dividends.
Why Quebecor Is Attractive for Dividend Investors
Those holding shares over recent years have benefited from Quebecor’s growing dividend income. The company's earnings growth rate of 8.2% annually over the last five years has contributed to strong returns for shareholders. This impressive performance in both earnings and payouts bolster Quebecor's reputation as a promising dividend stock.