Mader Group (ASX:MAD) shares rose more than 5% to a high of AU$2.85 in morning trading. The stock surged as the Australian contract labour company begins its dividends distribution today. The company declared an annual dividend of AU$0.02 per share.
Mader Group shares currently offer a dividend yield of 1.28%, above the sector average of 0.54%. The company has a modest dividend payout ratio of 14.2%, suggesting a sustainable dividend program. Another important event for Mader Group investors to watch is the 2022 AGM set for 7 October.
Mader Group is a multinational provider of contract labour to customers in the resources industry. The contract workforce it provides assist with roles such as maintenance of heavy mobile equipment. Rising alongside Mader in the morning session were MotorCycle Holdings (ASX:MTO) and 29Metals (ASX:29M).
Mader Group share price forecast
Mader Group shares have gained nearly 80% over the past year and analysts believe they have more room to run. According to TipRanks’ analyst rating consensus, Mader Group stock is a Moderate Buy. The average Mader Group share price forecast of AU$3.68 implies over 30% upside potential.
Mader Group scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Closing thought
In addition to offering substantial upside potential, Mader Group shares can also appeal to income investors considering its above-average dividend yield. Moreover, the company has been paying increasing annual dividends over the past three years.
