Skellerup Holdings (NZSE:SKL) to Pay Dividend of NZ$0.0979: A Win for Shareholders

As an investor, you're always on the lookout for companies that not only perform well but also reward their shareholders with dividends. One such company is Skellerup Holdings (NZSE:SKL), a global leader in precision engineered products. Recently, the company announced that it will pay a dividend of NZ$0.0979 per share for the 2021 financial year. Let's dive into the details and explore what this means for shareholders.



Skellerup Holdings' Dividend History
Skellerup Holdings has a history of paying dividends to its shareholders, with the exception of 2009 when it did not pay a dividend due to the global financial crisis. The company's dividend per share has been increasing over time, with a compound annual growth rate (CAGR) of approximately 8.89% between 2015 and 2021. This consistent growth in dividends reflects the company's strong financial performance and commitment to returning value to shareholders.

Why Skellerup Holdings' Dividend Matters
Skellerup Holdings' dividend matters for several reasons:

1. Income Generation: For retirees and income-oriented investors, dividends are a crucial source of income. Skellerup Holdings' dividend provides a steady stream of income, allowing shareholders to reinvest the dividends or use them to cover living expenses.
2. Capital Appreciation: While dividends are a significant source of income, they also play a role in capital appreciation. As Skellerup Holdings continues to grow its dividend, the company's share price may also increase, benefiting shareholders who hold the stock.
3. Dividend Yield: Skellerup Holdings' dividend yield is currently around 4.49%, which is higher than the average dividend yield of the Industrials sector (around 3.5%) and the broader market (around 1.5%). This attractive dividend yield can make Skellerup Holdings an appealing investment option for income-seeking investors.



Skellerup Holdings' Dividend Payout Ratio
Skellerup Holdings has a dividend payout ratio of approximately 40%, which means the company pays out 40% of its net profits as dividends to shareholders. This is higher than the average dividend payout ratio for the Industrials sector (around 35%) and the broader market (around 40%). A higher dividend payout ratio indicates that the company is more focused on returning capital to shareholders through dividends.



Conclusion
Skellerup Holdings' decision to pay a dividend of NZ$0.0979 per share is a testament to the company's strong financial performance and commitment to returning value to shareholders. With a history of dividend growth, an attractive dividend yield, and a high dividend payout ratio, Skellerup Holdings is an appealing investment option for income-seeking investors. As a shareholder, you can look forward to receiving this dividend and reinvesting it to grow your wealth over time.