Introduction to Balfour Beatty
Balfour Beatty is a leading international infrastructure group. It is involved in the design, construction, financing, operation and maintenance of infrastructure assets in the UK and worldwide. The company operates in the United Kingdom, the United States, Europe, Asia Pacific and the Middle East. Its activities include construction and engineering, services, rail, and investments. Balfour Beatty is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Balfour Beatty Dividend History
The company has been paying dividends since 2006 and has increased its dividend payment every year since then. The dividend has grown from 1.7p per share in 2006 to 8.4p in 2020. This represents a compound annual growth rate (CAGR) of 14.4%. The company has declared a dividend for 2021 of 8.75p per share, which is an increase of 4.2% compared to 2020.
Balfour Beatty Dividend Yield
The dividend yield of Balfour Beatty is currently 3.3%. This is higher than the FTSE 100 average of 3.2%. The dividend yield is calculated by dividing the dividend per share by the share price. The dividend yield is an important factor to consider when investing in shares because it provides investors with an indication of how much they can expect to earn in dividends in relation to the share price.
Balfour Beatty Dividend Cover
The dividend cover of Balfour Beatty is currently 1.1. This means that for every £1 of dividend paid out, the company has £1.10 in profits to cover the dividend. This is considered a healthy level of dividend cover and suggests that the company is in a good position to sustain its dividend payments in the future.
Balfour Beatty Dividend Growth
Balfour Beatty has demonstrated consistent growth in its dividend payments over the past five years. The company has increased its dividend by an average of 5.6% per year over the last five years. This is higher than the average dividend growth rate of the FTSE 100, which stands at 4.4%. This indicates that the company is committed to rewarding shareholders with a growing dividend.
Balfour Beatty Dividend Outlook
The outlook for Balfour Beatty’s dividend is positive. The company has a strong track record of dividend growth and is expected to continue to increase its dividend payments in the future. Furthermore, the company’s dividend cover suggests that it is in a good position to sustain its dividend payments in the future.
Conclusion
Balfour Beatty has a strong track record of dividend growth and is expected to continue to increase its dividend payments in the future. The company’s dividend yield and dividend cover are both healthy and suggest that the company is in a good position to sustain its dividend payments in the future. Therefore, investors looking for a solid dividend stock should consider Balfour Beatty.