The board of MSA Safety Incorporated (NYSE:MSA) has announced that the dividend on 10th of June will be increased to $0.53, which will be 3.9% higher than last year's payment of $0.51 which covered the same period. Based on this payment, the dividend yield for the company will be 1.3%, which is fairly typical for the industry.

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MSA Safety's Projected Earnings Seem Likely To Cover Future Distributions

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Before making this announcement, MSA Safety was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

Looking forward, earnings per share is forecast to rise by 24.1% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 24%, which is in the range that makes us comfortable with the sustainability of the dividend.NYSE:MSA Historic Dividend May 13th 2025

Check out our latest analysis for MSA Safety

MSA Safety Has A Solid Track Record

The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $1.24 in 2015, and the most recent fiscal year payment was $2.04. This works out to be a compound annual growth rate (CAGR) of approximately 5.1% a year over that time. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. MSA Safety has impressed us by growing EPS at 12% per year over the past five years. MSA Safety definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like MSA Safety's Dividend

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 5 analysts we track are forecasting for MSA Safety for free  with public analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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