Typically, progress shares swap sides to change into large dividend payers as an alternative. Nevertheless, the share price typically declines first, however not all the time.

One inventory with slowing progress charges has held on to its elevated share price and now pays a chunky dividend.

On high of that, it has the potential to launch into one other part of fast-paced progress. So it’s now a dividend inventory with advantages!

This one appears totally different

Typically, shareholder dividends don’t exist with corporations rising their earnings quick. Or in the event that they do, the yield’s typically low.

So for progress shares, it’s all about focusing on capital appreciation by way of a (hopefully) rising share price.

Nevertheless, over time, companies typically run their course with speedy progress. Even when that’s only for an prolonged interval till a brand new catalyst comes alongside to reignite operations.

Annual will increase in earnings may decline then the valuation will possible fall to get in tune with the slowing progress charge. And in such conditions, share costs may slip, or maybe transfer sideways, for a very long time.

What we regularly see from one-time progress darlings is lacklustre earnings advances accompanied by a yield that isn’t price writing house about. Typically, the standard indicators of the enterprise stay enticing, however the share price motion could be pedestrian – for a very long time!

However the firm I’m fascinated about breaks the mould. It’s Video games Workshop (LSE: GAW), the miniature figures and video games specialist.

The share price rose by virtually 1,500% over a four-year interval from the start of 2017 to the top of 2020, pushed by some chunky double-digit advances in earnings.

Massive dividends

Nevertheless, the inventory now stays beneath its peak of round 4 years in the past and the speed of earnings progress within the enterprise has cooled.

Metropolis analysts anticipate a modest uplift in earnings for the present buying and selling yr to Could 2025 of simply over 3%. That appears like slowing progress to me.

Nevertheless, the administrators have authorised some large will increase within the dividend over the previous few years. Now, with the share price close to 10,743p (26 June), the forward-looking yield for the present buying and selling yr is simply above 4%.

That degree of shareholder earnings places it up with a number of the greatest dividend shares in the marketplace.

There are dangers right here although. One is that the speed of earnings progress has declined a lot it might simply transfer to unfavorable percentages going ahead.

The enterprise is sort of area of interest and depends on a military of loyal prospects ready to immerse themselves within the figures and fantasy worlds created by the corporate. If the provide loses recognition, it might be simple to lose cash on this inventory.

However what concerning the added advantages? Nicely, the corporate just lately granted unique rights to Amazon for movies and tv collection to be set inside Video games Worksop’s Warhammer 40,000 universe.

If that association goes on to ship, it’s doable for it to catalyse a brand new interval of speedy progress in earnings. Though constructive outcomes aren’t assured.

We’ll discover out extra from the corporate with the full-year earnings launch, due on 30 June.

In the meantime, I see Video games Workshop as price additional research and consideration now. I’d weigh it up for doable inclusion in a diversified portfolio of dividend shares with a long-term focus.