Progress Software Corporation to Pay Dividend on March 15th

Progress Software Corporation (NASDAQ:PRGS) has announced its plan to pay a dividend on March 15th, with a per-share amount of $0.175. This dividend payout will result in a dividend yield of 1.2%, which is expected to attract investors looking for attractive returns.

Although dividend yields are appealing, their sustainability is of utmost importance. In the case of Progress Software, the last dividend was easily covered by the company’s earnings. This indicates that a significant portion of earnings is being reinvested in the business to fuel its growth. Analysts predict that the company’s earnings per share (EPS) will expand by 72.4% over the next year. Considering recent trends, the estimated payout ratio of the dividend will be 28%, a range that suggests the dividend is sustainable.

Despite having a relatively shorter payment history, Progress Software’s track record of dividend payments has been solid over the past seven years. During this period, the dividend has grown from $0.50 annually to $0.70, representing a 4.9% annual growth rate. However, due to the short history, it would be prudent to observe the company’s performance for a few more years to draw confident conclusions about its growth potential.

Progress Software has demonstrated positive growth in EPS, with an 8.0% annual increase over the past five years. This upward trend in earnings, coupled with a smaller dividend payout ratio, suggests that the company has the potential to further grow its dividend.

While the dividend’s consistency is promising, it is essential to consider the company’s overall dividend record. Some caution should be exercised due to past issues. Investors usually prefer companies with a consistent and stable dividend policy rather than those with irregular dividend practices.

In conclusion, the announcement of Progress Software Corporation’s upcoming dividend payment is encouraging. The sustainability of the dividend and growth potential are positive indicators, but investors should consider additional factors before making investment decisions.

Frequently Asked Questions

1. When will Progress Software Corporation pay its dividend?
– Progress Software Corporation plans to pay its dividend on March 15th.

2. What is the per-share amount of the dividend?
– The per-share amount of the dividend is $0.175.

3. What is the expected dividend yield?
– The dividend yield is expected to be 1.2%.

4. Is the dividend sustainable?
– Yes, the last dividend was easily covered by the company’s earnings, indicating sustainability. The estimated payout ratio for the dividend is 28%.

5. What is the track record of Progress Software’s dividend payments?
– Progress Software has a solid track record of dividend payments over the past seven years. The dividend has grown from $0.50 annually to $0.70, representing a 4.9% annual growth rate.

6. What is the company’s growth potential?
– Progress Software has demonstrated positive growth in earnings per share (EPS) with an 8.0% annual increase over the past five years. This, coupled with a smaller dividend payout ratio, suggests potential for further dividend growth.

7. Should investors be cautious?
– While the dividend’s consistency is promising, investors should exercise caution due to past issues. It is generally preferred to invest in companies with a consistent and stable dividend policy.

Key Terms/Jargon:
– Dividend yield: The dividend yield is a financial ratio that shows how much a company pays out in dividends relative to its stock price.
– Payout ratio: The payout ratio is the percentage of a company’s earnings that is paid out to shareholders as dividends.
– EPS: Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock.
– Growth potential: The likelihood or potential for a company to experience growth, generally in terms of earnings or stock price.

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