Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Howden Joinery Group Plc (LON: HWDN) has recently announced that they will be increasing their dividend on November 17th to £0.048 per share. It will be a 2.1% increase from last year’s payment of £0.047 during the same period. This move will result in a dividend yield of 2.8%, which is quite attractive and will undoubtedly boost shareholder returns.
The Earnings per share and its growth
While impressive dividend yields are excellent, they’re only valuable if the payments can be sustained and reinvested into the business. Fortunately, Howden Joinery Group’s net income of £374 million in 2022 was more than enough to cover their dividend payments.
The company’s management has decided to present decent to the shareholders as a dividend payout. They may supply 36.6% of their earnings as dividends and reinvest the closing 63.4% lower back into the operations. That has helped the company’s earnings per share (EPS) grow at an average rate of about 20% yearly since 2019. The company’s growing earnings may lead to stronger dividends in the future, thanks to a decent amount of growth and a low payout ratio.
Technical analysis and prediction of HWDN stock price
The HWDN stock price was in a bearish trend last December, falling to £555. However, it started to turn bullish soon after. By the middle of January, the bulls broke a major resistance level of £649. Later, in August of this year, the investors broke another resistance of £693, confirming the bullish trend.
The current situation has led the bulls to approach the immediate resistance level of £760. This pivot zone has been tested frequently in recent times. The bear’s hold on this level seems to break, but the hopes are held high as the bulls are motivated by the current trend line.
The Relative strength index
The RSI, on the other hand, is showing a consolidation. After coming back from the overbought level of 70 back in August, it is currently at a neutral territory of 52. Its Simple moving average line is at 53.
The HWDN stock price prediction will be bullish as with the current trend. The bulls are likely to break past the resistance level of £760. However, a risk-defensive trader needs to wait till the price goes over the level. It may also retest its support once before a bullish breakout.
Conclusion
The company has recently announced that it will be increasing its dividend this year. The stock is experiencing a bullish rally upon which the share price is set to break its immediate resistance level. The risk-defensive traders are advised to wait until the HWDN stock price exceeds its immediate resistance level.
Technical Levels
Support: £693, and £651
Resistance: £760, and £791
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/29/hwdn-stock-price-uptrend-is-seen-with-a-growth-in-dividends/