The board of Malta International Airport p.l.c. (MTSE:MIA) has announced that it will pay a dividend of €0.06 per share on the 12th of September. This makes the dividend yield 4.6%, which will augment investor returns quite nicely.
Malta International Airport’s Payment Could Potentially Have Solid Earnings Coverage
We like to see robust dividend yields, but that doesn’t matter if the payment isn’t sustainable. Before making this announcement, Malta International Airport was paying out quite a large proportion of both earnings and cash flow, with the dividend being 142% of cash flows. Paying out such a high proportion of cash flows certainly exposes the company to cutting the dividend if cash flows were to reduce.
Over the next year, EPS could expand by 6.4% if recent trends continue. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 55% which brings it into quite a comfortable range.
MTSE:MIA Historic Dividend August 8th 2025
Check out our latest analysis for Malta International Airport
Dividend Volatility
The company’s dividend history has been marked by instability, with at least one cut in the last 10 years. The dividend has gone from an annual total of €0.169 in 2015 to the most recent total annual payment of €0.277. This works out to be a compound annual growth rate (CAGR) of approximately 5.0% a year over that time. A reasonable rate of dividend growth is good to see, but we’re wary that the dividend history is not as solid as we’d like, having been cut at least once.
Malta International Airport Could Grow Its Dividend
Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. We are encouraged to see that Malta International Airport has grown earnings per share at 6.4% per year over the past five years. EPS has been growing at a reasonable rate, although with most of the profits being paid out to shareholders, growth prospects could be more limited in the future.
Malta International Airport’s Dividend Doesn’t Look Sustainable
Overall, it’s nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. The payments are bit high to be considered sustainable, and the track record isn’t the best. We don’t think Malta International Airport is a great stock to add to your portfolio if income is your focus.
It’s important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. For instance, we’ve picked out 1 warning sign for Malta International Airport that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
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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.