Open Text's Dividend: A Closer Look at Its Sustainability
PorAinvest
domingo, 31 de agosto de 2025, 8:43 am ET1 min de lectura
OTEX--
The dividend yield of 3.3% is higher than the bottom 25% of dividend payers in the Canadian market, which is 1.8%, but it is lower than the top 25%, which is 5.9% [1]. The company's payout ratio, at 63%, suggests that its dividend payments are well covered by earnings, and its cash payout ratio, at 40.7%, indicates that the payments are also well covered by cash flows [1].
Investors should always check if the dividend is covered by cash flow and earnings. Open Text Corporation's stable and growing dividends over the past decade suggest a reliable income stream. However, the company's recent earnings have been mixed, with some quarters exceeding analyst expectations and others falling short [1].
The company's recent announcements include the launch of its Cloud Editions 25.3 and the appointment of new board members and executives. These developments may impact the company's future dividend payments and overall performance [1].
In conclusion, Open Text Corporation's upcoming dividend payment of $0.275 per share is a positive sign for investors seeking stable income. However, investors should carefully consider the company's recent earnings trends and other developments before making investment decisions.
References:
[1] https://simplywall.st/stocks/ca/software/tsx-otex/open-text-shares/dividend
Open Text Corporation is set to pay a dividend of $0.275 per share on September 19th. The company's trailing yield is 3.3% and it paid out 63% of its earnings to investors last year. The dividend is covered by both profit and cash flow, suggesting it is sustainable. However, investors should always check if the dividend is covered by cash flow and earnings.
Open Text Corporation (OTEX) has announced an upcoming dividend payment of $0.275 per share, scheduled for September 19, 2025. The company's trailing yield stands at 3.3%, and it paid out 63% of its earnings to investors last year. This dividend is covered by both profit and cash flow, indicating its sustainability [1].The dividend yield of 3.3% is higher than the bottom 25% of dividend payers in the Canadian market, which is 1.8%, but it is lower than the top 25%, which is 5.9% [1]. The company's payout ratio, at 63%, suggests that its dividend payments are well covered by earnings, and its cash payout ratio, at 40.7%, indicates that the payments are also well covered by cash flows [1].
Investors should always check if the dividend is covered by cash flow and earnings. Open Text Corporation's stable and growing dividends over the past decade suggest a reliable income stream. However, the company's recent earnings have been mixed, with some quarters exceeding analyst expectations and others falling short [1].
The company's recent announcements include the launch of its Cloud Editions 25.3 and the appointment of new board members and executives. These developments may impact the company's future dividend payments and overall performance [1].
In conclusion, Open Text Corporation's upcoming dividend payment of $0.275 per share is a positive sign for investors seeking stable income. However, investors should carefully consider the company's recent earnings trends and other developments before making investment decisions.
References:
[1] https://simplywall.st/stocks/ca/software/tsx-otex/open-text-shares/dividend

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