SThree (LON:STEM) Is Due To Pay A Dividend Of £0.092

Simply Wall St

Fri, February 13, 2026 at 2:16 PM GMT+9 3 min read

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STEM.L

-1.22%

SThree plc’s (LON:STEM) investors are due to receive a payment of £0.092 per share on 12th of June. This means the annual payment is 8.0% of the current stock price, which is above the average for the industry.

We’ve found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

SThree’s Future Dividend Projections Appear Well Covered By Earnings

If the payments aren’t sustainable, a high yield for a few years won’t matter that much. Based on the last payment, SThree’s profits didn’t cover the dividend, but the company was generating enough cash instead. Given that the dividend is a cash outflow, we think that cash is more important than accounting measures of profit when assessing the dividend, so this is a mitigating factor.

Over the next year, EPS is forecast to expand by 53.6%. Under the assumption that the dividend will continue along recent trends, we think the payout ratio could be 67% which would be quite comfortable going to take the dividend forward.

LSE:STEM Historic Dividend February 13th 2026

Check out our latest analysis for SThree

Dividend Volatility

While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The annual payment during the last 10 years was £0.14 in 2016, and the most recent fiscal year payment was £0.143. Dividend payments have grown at less than 1% a year over this period. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past.

Dividend Growth May Be Hard To Achieve

With a relatively unstable dividend, it’s even more important to see if earnings per share is growing. Although it’s important to note that SThree’s earnings per share has basically not grown from where it was five years ago, which could erode the purchasing power of the dividend over time.

The Dividend Could Prove To Be Unreliable

In summary, while it’s good to see that the dividend hasn’t been cut, we are a bit cautious about SThree’s payments, as there could be some issues with sustaining them into the future. The payments haven’t been particularly stable and we don’t see huge growth potential, but with the dividend well covered by cash flows it could prove to be reliable over the short term. We would be a touch cautious of relying on this stock primarily for the dividend income.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we’ve picked out 2 warning signs for SThree that investors should know about before committing capital to this stock. 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.

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