Stryker Corporation (NYSE:SYK) will pay a dividend of $0.80 on the 31st of October. Despite this raise, the dividend yield of 0.9% is only a modest boost to shareholder returns.
Check out our latest analysis for Stryker
Stryker’s Projected Earnings Seem Likely To Cover Future Distributions
Even a low dividend yield can be attractive if it is sustained for years on end. However, Stryker’s earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.
Over the next year, EPS is forecast to expand by 39.1%. Assuming the dividend continues along recent trends, we think the payout ratio could be 28% by next year, which is in a pretty sustainable range.
Stryker Has A Solid Track Record
Even over a long history of paying dividends, the company’s distributions have been remarkably stable. The annual payment during the last 10 years was $1.22 in 2014, and the most recent fiscal…
