Investors In Lampsa Hellenic Hotels S.A. (ATH:LAMPS) Should Consider This Data

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. Historically, Lampsa Hellenic Hotels S.A. (ATH:LAMPS) has been paying a dividend to shareholders. Today it yields 1.1%. Let’s dig deeper into whether Lampsa Hellenic Hotels should have a place in your portfolio.

Check out our latest analysis for Lampsa Hellenic Hotels

Here’s how I find good dividend stocks

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

• Is its annual yield among the top 25% of dividend-paying companies?

• Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

• Has dividend per share risen in the past couple of years?

• Is its earnings sufficient to payout dividend at the current rate?

• Will it be able to continue to payout at the current rate in the future?

How does Lampsa Hellenic Hotels fare?

The current trailing twelve-month payout ratio for the stock is 50%, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.

When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Dividend payments from Lampsa Hellenic Hotels have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves.

Compared to its peers, Lampsa Hellenic Hotels produces a yield of 1.1%, which is on the low-side for Hospitality stocks.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in Lampsa Hellenic Hotels for the dividend. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three important factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for LAMPS’s future growth? Take a look at our free research report of analyst consensus for LAMPS’s outlook.

2. Historical Performance: What has LAMPS’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.