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Bird Construction's sustainable dividend attracts investors

EditorHari Govind
Published 26/10/2023, 14:46
Updated 26/10/2023, 14:46
© Reuters.

Bird Construction Inc. (TSE:BDT) has announced that its shares will go ex-dividend in three days, setting the record date one day earlier. To qualify for the upcoming dividend of CAD 0.036 per share, shares must be purchased before October 30th, with payment scheduled for November 20th. This forms part of the CAD 0.43 per share distributed over the past year, yielding 4.2% from its current share price of CAD 10.28. The company's dividend policy seems sustainable with a payout ratio of 45% and a cash flow distribution of 27%. Bird Construction has shown strong earnings growth, with an annual rate of 34% over the last five years. Despite this positive trend, dividends per share have seen an average annual decline of 5.0% over the past decade, likely due to substantial reinvestment into the business.

In other news, Synchrony Financial (NYSE:SYF) is also about to trade ex-dividend, with investors buying after October 31st missing out on the upcoming $0.25 per share dividend due on November 9th. This forms part of an annual payout totaling $1.00 per share, yielding 3.6% based on the current $27.7 stock price. The company's low payout ratio of 17% of last year's profit indicates a sustainable dividend policy with room for unexpected events.

Heritage Financial (NASDAQ:HFWA) Corporation (NASDAQ:HFWA) is set to trade ex-dividend in four days, with the record date set one day later. The upcoming $0.22 per share dividend is payable on November 15th, forming part of the $0.88 per share distributed last year, yielding 5.5% on the current $15.97 share price.

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Meanwhile, Citizens Financial Group (NYSE:NYSE:CFG) will soon trade ex-dividend; purchases made after October 31 won't qualify for the imminent dividend of $0.42 per share on November 15. The company distributed $1.68 per share to shareholders last year, achieving a trailing yield of 7.2% with its current share price of $23.47.

On the other hand, K-Bro Linen Inc.'s (TSE:KBL) ex-dividend date requires shares to be purchased by October 30th for eligibility for the CAD 0.10 per share dividend on November 15th. However, K-Bro Linen's sustainability is doubtful due to an unsustainable 136% of profit and 101% of free cash flow paid out as dividends last year.

Lastly, Savaria Corporation (TSE:SIS) will trade ex-dividend in three days with an upcoming dividend of CAD 0.043 per share, following a total distribution of CAD 0.52 per share over the last year. However, the company's high dividend payout ratio of 91% of its earnings and dividends consuming 57% of free cash flow last year raises concerns about sustainability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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