I still consider that to be high even for a business of Halma's quality and track record. I wrote a year ago in Halma: Strong Performance Does Not Justify Current Valuation that the shares did not merit their valuation, since when the stock has fallen 29%.Īfter that fall and based on the most recent earnings, the current price-to-earnings ratio is now 34. But at the current share price the yield does not seem attractive. That isn't the company's fault and I think management has done a great job at lifting the payout consistently. market, the Halma dividend yield just does not look attractive to me no matter how stellar the record of increases. But even if they don't, why wait 25 years for 3.8% yield when a number of blue chip FTSE 100 companies offer the same or better right now? Maybe the dividend reliability is lower than Halma (though maybe not: time will tell), but given what is available right now in the U.K. A quarter of a century is a long time in which many things can go wrong, even for a dividend aristocrat. Our cash CFDs stocks are undated transactions that aim to replicate the cash price of the underlying. Even if the company continues to compound its dividend at the rate it has done over the past decade, the yield a quarter century from now will still only be 3.8%. At XM we offer Halma plc (HLMA.L) stocks as cash CFDs. With a record of annual dividend increases stretching back over more than four decades, that is understandable.īut at the present share price, the dividend yield is only 0.9%. The Dividend Story is Great but not LucrativeĪs a dividend aristocrat, Halma gets a lot of attention. Although the market for alarms and similar equipment is significantly driven by necessity, it could still well slow down amid an economic downturn as customers push back or cancel non-essential work. That does not mean there are not risks, though. The end market should remain strong and Halma's mix of brands, reputation, specialist services and repeat custom along with the necessity nature of the product should support ongoing profitability at an attractive level. I think this model will continue to do well in the future. Halma plc (LON:HLMA Get Rating) insider Andrew Williams sold 19,335 shares of the businesss stock in a transaction that occurred on Friday, July 1st. Halma shareholder return (company annual report 2022) Unsurprisingly, this sterling business performance continues to be rewarding for long-term shareholders, as the following chart shows.

Table calculated and compiled by author using data from company annual reports (some figures have been restated) That helps explain why the dividend is currently covered a conservative 3.5 times by earnings. Not only that, but the dividend growth has actually been slower though still solid. Looking back over the past decade it has grown revenue 8% on a compounded annual basis and basic earnings per share at 10% compounded. It has excellent pricing power (its net margin last year was 16.3%). It has honed its acquisition model over many years.

It is in an area with strong, durable consumer need and pricing power. I continue to think that the Halma business model is highly attractive. That is a solid performance all round yet again and the management deserves credit for an excellent performance even though the company has made a habit of it. Halma plc (HLMA.L) LSE - LSE Delayed Price. View daily, weekly or monthly format back to when Halma plc stock was issued. The profit was a record for the 19th consecutive year, while the dividend was raised by 5% or more (in this case, 7%) for the 43rd consecutive year. Discover historical prices for HLMA.L stock on Yahoo Finance.

Halma turned in another set of record results last year.

Halma Continues to have Strong Growth Prospects I continue to like the business a lot but still regard its shares as overpriced. dividend aristocrat Halma ( OTCPK:HLMAF) has seen its share price slide. New Executive Board structure operating well, with an initial focus on sector growth strategies and development of management talent.U.K. Strong cash flow and significant financial capacity for investment in organic growth and value-adding acquisitions. The stock is being used as a proxy for raising cash as redemption requests are received. £87m net cash spend on three acquisitions. Lower profit in Environmental & Analysis with improvement expected in the second half of the year. Strong profit growth maintained in Process Safety, Infrastructure Safety and Medical. Good performance in the USA steady progress in the UK, Asia Pacific and Europe. Organic constant currency revenue growth in all regions. Growth with higher returns: adjusted pre-tax profit up 6%, revenue up 2%, with adverse currency translation impact of 5% on revenue and profit. Halma increases its 2015 interim dividend by 7%

Halma stock