Latest news with #dividendpayments
Bloomberg
4 days ago
- Business
- Bloomberg
Trafigura Warns of Trading Headwinds as Payouts Outstrip Profits
Trafigura Group warned that market volatility may not translate to opportunities for its traders, as the commodity giant reported first-half results that showed its dividend payments exceeded net profit. US President Donald Trump's trade war in the last couple of months has ignited sharp price swings and market dislocations — typically conditions that commodity traders thrive on. Trafigura said it expects volatility to continue over the remainder of 2025, but cautioned that it may not flow through to earnings.
Yahoo
25-05-2025
- Business
- Yahoo
Should You Buy Labcorp Holdings Inc. (NYSE:LH) For Its Upcoming Dividend?
Labcorp Holdings Inc. (NYSE:LH) stock is about to trade ex-dividend in 3 days. The ex-dividend date occurs one day before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase Labcorp Holdings' shares on or after the 29th of May, you won't be eligible to receive the dividend, when it is paid on the 11th of June. The company's next dividend payment will be US$0.72 per share, and in the last 12 months, the company paid a total of US$2.88 per share. Looking at the last 12 months of distributions, Labcorp Holdings has a trailing yield of approximately 1.2% on its current stock price of US$242.53. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. Our free stock report includes 1 warning sign investors should be aware of before investing in Labcorp Holdings. Read for free now. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Fortunately Labcorp Holdings's payout ratio is modest, at just 33% of profit. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. The good news is it paid out just 21% of its free cash flow in the last year. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. See our latest analysis for Labcorp Holdings Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If earnings fall far enough, the company could be forced to cut its dividend. It's not encouraging to see that Labcorp Holdings's earnings are effectively flat over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share. Recent growth has not been impressive. However, companies that see their growth slow can often choose to pay out a greater percentage of earnings to shareholders, which could see the dividend continue to rise. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Labcorp Holdings's dividend payments are broadly unchanged compared to where they were three years ago. Is Labcorp Holdings an attractive dividend stock, or better left on the shelf? Earnings per share have been flat over this time, but we're intrigued to see that Labcorp Holdings is paying out less than half its earnings and cash flow as dividends. This is interesting for a few reasons, as it suggests management may be reinvesting heavily in the business, but it also provides room to increase the dividend in time. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine strong earnings per share growth with a low payout ratio, and Labcorp Holdings is halfway there. There's a lot to like about Labcorp Holdings, and we would prioritise taking a closer look at it. In light of that, while Labcorp Holdings has an appealing dividend, it's worth knowing the risks involved with this stock. Our analysis shows 1 warning sign for Labcorp Holdings and you should be aware of it before buying any shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
