This Dividend Stock Is Down 13% in the Past Year, but the Payout Looks Safe

There is a big difference between a stock under pressure and a dividend under pressure.

While the two can happen at the same time, they don’t always.

A company can face slower growth, weaker earnings, and a falling share price while still having enough cash and financial flexibility to keep paying shareholders.

In this article, I’ll highlight one Canadian dividend stock that has taken a hit in the market but still appears to have solid support behind its payout.

Why Enghouse stock deserves a closer look Enghouse Systems (TSX: ENGH) is a good example of why a beaten-down share price doesn’t automatically mean the dividend is headed for trouble.

This Markham-based company provides enterprise software for contact centres, video communications, telecommunications networks, public safety, transit, and healthcare.

At the time of writing, Enghouse stock traded around $18 per share with a market cap of $984 million.

Its shares are down about 13% over the last year.

At today’s price, that pullback has pushed the annualized dividend yield to 6.8%.

This decline in ENGH stock has mainly been triggered by recent weakness in its business results.

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