Operations: NRW Holdings Limited generates its revenue primarily from three segments: Mining (A$1.49 billion), MET (A$739.07 million), and Civil (A$593.62 million).

Dividend Yield: 5.2%

NRW Holdings has shown a modest increase in earnings, with sales rising to A$1.43 billion and net income reaching A$41.64 million as of December 2023. Despite a history of unreliable and volatile dividends, recent growth trends are positive, with earnings up 15.8% annually over five years and forecasts suggesting further growth at 14.05% per year. The dividend coverage is reasonable, supported by a payout ratio of 74% and cash flow coverage at 68.6%, though its dividend yield of 5.16% remains below the top Australian payers.

• Click here to discover the nuances of NRW Holdings with our detailed analytical dividend report.

• Insights from our recent valuation report point to the potential undervaluation of NRW Holdings shares in the market.

Sonic Healthcare

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Sonic Healthcare Limited provides medical diagnostic services to medical practitioners, hospitals, and community health services, with a market capitalization of approximately A$12.98 billion.

Operations: Sonic Healthcare Limited generates revenue primarily through its laboratory and radiology segments, with A$7.12 billion from laboratory services and A$0.84 billion from radiology services.

Dividend Yield: 3.8%

Sonic Healthcare has demonstrated consistent dividend growth over the past decade, although its current yield of 3.85% falls below the top quartile in Australia. Despite a stable historical payout, the dividends are poorly covered by both earnings and cash flow, with payout ratios at 98% and 87.5%, respectively. Recent financials show a decline in net income from A$382.35 million to A$202.31 million year-over-year, alongside reduced profit margins from 11.7% to 6%, suggesting potential pressure on future dividend sustainability.

• Unlock comprehensive insights into our analysis of Sonic Healthcare stock in this dividend report.

• Our valuation report here indicates Sonic Healthcare may be undervalued.

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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.

Companies discussed in this article include ASX:ALDASX:NWHASX:SHL and

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