Latest news with #exdividend
Yahoo
5 days ago
- Business
- Yahoo
Dividend Investors: Don't Be Too Quick To Buy Mühlbauer Holding AG (ETR:MUB) For Its Upcoming Dividend
Readers hoping to buy Mühlbauer Holding AG (ETR:MUB) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Accordingly, Mühlbauer Holding investors that purchase the stock on or after the 24th of July will not receive the dividend, which will be paid on the 28th of July. The company's next dividend payment will be €1.50 per share, and in the last 12 months, the company paid a total of €1.50 per share. Looking at the last 12 months of distributions, Mühlbauer Holding has a trailing yield of approximately 3.3% on its current stock price of €45.40. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Mühlbauer Holding paid out 184% of profit in the past year, which we think is typically not sustainable unless there are mitigating characteristics such as unusually strong cash flow or a large cash balance. A useful secondary check can be to evaluate whether Mühlbauer Holding generated enough free cash flow to afford its dividend. Thankfully its dividend payments took up just 49% of the free cash flow it generated, which is a comfortable payout ratio. It's good to see that while Mühlbauer Holding's dividends were not covered by profits, at least they are affordable from a cash perspective. If executives were to continue paying more in dividends than the company reported in profits, we'd view this as a warning sign. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits. Check out our latest analysis for Mühlbauer Holding Click here to see how much of its profit Mühlbauer Holding paid out over the last 12 months. Have Earnings And Dividends Been Growing? Businesses with shrinking earnings are tricky from a dividend perspective. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're discomforted by Mühlbauer Holding's 24% per annum decline in earnings in the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Mühlbauer Holding has delivered 4.1% dividend growth per year on average over the past 10 years. That's intriguing, but the combination of growing dividends despite declining earnings can typically only be achieved by paying out a larger percentage of profits. Mühlbauer Holding is already paying out 184% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. Final Takeaway Is Mühlbauer Holding an attractive dividend stock, or better left on the shelf? It's not a great combination to see a company with earnings in decline and paying out 184% of its profits, which could imply the dividend may be at risk of being cut in the future. However, the cash payout ratio was much lower - good news from a dividend perspective - which makes us wonder why there is such a mis-match between income and cashflow. It's not that we think Mühlbauer Holding is a bad company, but these characteristics don't generally lead to outstanding dividend performance. Although, if you're still interested in Mühlbauer Holding and want to know more, you'll find it very useful to know what risks this stock faces. For example, we've found 3 warning signs for Mühlbauer Holding (1 is potentially serious!) that deserve your attention before investing in the shares. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. 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.
Yahoo
29-06-2025
- Business
- Yahoo
Should Income Investors Look At Record plc (LON:REC) Before Its Ex-Dividend?
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Record plc (LON:REC) is about to trade ex-dividend in the next 3 days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible 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. In other words, investors can purchase Record's shares before the 3rd of July in order to be eligible for the dividend, which will be paid on the 25th of July. The company's next dividend payment will be UK£0.025 per share, and in the last 12 months, the company paid a total of UK£0.046 per share. Looking at the last 12 months of distributions, Record has a trailing yield of approximately 7.4% on its current stock price of UK£0.632. If you buy this business for its dividend, you should have an idea of whether Record's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Record paid out 92% of its earnings, which is more than we're comfortable with, unless there are mitigating circumstances. Generally, the higher a company's payout ratio, the more the dividend is at risk of being reduced. Check out our latest analysis for Record Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're encouraged by the steady growth at Record, with earnings per share up 9.0% on average over the last five years. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, Record has increased its dividend at approximately 12% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. Is Record an attractive dividend stock, or better left on the shelf? Record has been growing earnings per share at a reasonable rate, but over the last year its dividend was not well covered by earnings. Record doesn't appear to have a lot going for it, and we're not inclined to take a risk on owning it for the dividend. So if you're still interested in Record despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. Every company has risks, and we've spotted 2 warning signs for Record you should know about. If you're in the market for strong dividend payers, we recommend checking our selection of top 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.
Yahoo
14-06-2025
- Business
- Yahoo
Don't Buy Airtel Africa Plc (LON:AAF) For Its Next Dividend Without Doing These Checks
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Airtel Africa Plc (LON:AAF) is about to trade ex-dividend in the next 4 days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the 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. Accordingly, Airtel Africa investors that purchase the stock on or after the 19th of June will not receive the dividend, which will be paid on the 25th of July. The company's next dividend payment will be US$0.039 per share, on the back of last year when the company paid a total of US$0.065 to shareholders. Last year's total dividend payments show that Airtel Africa has a trailing yield of 2.7% on the current share price of UK£1.764. If you buy this business for its dividend, you should have an idea of whether Airtel Africa's dividend is reliable and sustainable. As a result, readers should always check whether Airtel Africa has been able to grow its dividends, or if the dividend might be cut. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Last year, Airtel Africa paid out 109% of its income as dividends, which is above a level that we're comfortable with, especially if the company needs to reinvest in its business. A useful secondary check can be to evaluate whether Airtel Africa generated enough free cash flow to afford its dividend. What's good is that dividends were well covered by free cash flow, with the company paying out 16% of its cash flow last year. It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and Airtel Africa fortunately did generate enough cash to fund its dividend. Still, if the company repeatedly paid a dividend greater than its profits, we'd be concerned. Very few companies are able to sustainably pay dividends larger than their reported earnings. See our latest analysis for Airtel Africa Click here to see the company's payout ratio, plus analyst estimates of its future dividends. When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. Readers will understand then, why we're concerned to see Airtel Africa's earnings per share have dropped 10% a year over the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last six years, Airtel Africa has lifted its dividend by approximately 1.3% a year on average. Is Airtel Africa an attractive dividend stock, or better left on the shelf? It's never great to see earnings per share declining, especially when a company is paying out 109% of its profit as dividends, which we feel is uncomfortably high. However, the cash payout ratio was much lower - good news from a dividend perspective - which makes us wonder why there is such a mis-match between income and cashflow. Overall it doesn't look like the most suitable dividend stock for a long-term buy and hold investor. With that in mind though, if the poor dividend characteristics of Airtel Africa don't faze you, it's worth being mindful of the risks involved with this business. To that end, you should learn about the 2 warning signs we've spotted with Airtel Africa (including 1 which can't be ignored). If you're in the market for strong dividend payers, we recommend checking our selection of top 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-06-2025
- Business
- Yahoo
It Might Not Be A Great Idea To Buy FDM Group (Holdings) plc (LON:FDM) For Its Next Dividend
It looks like FDM Group (Holdings) plc (LON:FDM) is about to go ex-dividend in the next 3 days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the 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 FDM Group (Holdings)'s shares on or after the 5th of June, you won't be eligible to receive the dividend, when it is paid on the 27th of June. The company's next dividend payment will be UK£0.125 per share, on the back of last year when the company paid a total of UK£0.23 to shareholders. Last year's total dividend payments show that FDM Group (Holdings) has a trailing yield of 9.9% on the current share price of UK£2.27. If you buy this business for its dividend, you should have an idea of whether FDM Group (Holdings)'s dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. 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. FDM Group (Holdings) distributed an unsustainably high 120% of its profit as dividends to shareholders last year. Without more sustainable payment behaviour, the dividend looks precarious. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 110% of its free cash flow in the form of dividends last year, which is outside the comfort zone for most businesses. Companies usually need cash more than they need earnings - expenses don't pay themselves - so it's not great to see it paying out so much of its cash flow. FDM Group (Holdings) does have a large net cash position on the balance sheet, which could fund large dividends for a time, if the company so chose. Still, smart investors know that it is better to assess dividends relative to the cash and profit generated by the business. Paying dividends out of cash on the balance sheet is not long-term sustainable. Cash is slightly more important than profit from a dividend perspective, but given FDM Group (Holdings)'s payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend. See our latest analysis for FDM Group (Holdings) Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. Readers will understand then, why we're concerned to see FDM Group (Holdings)'s earnings per share have dropped 13% a year over the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, FDM Group (Holdings) has lifted its dividend by approximately 4.1% a year on average. The only way to pay higher dividends when earnings are shrinking is either to pay out a larger percentage of profits, spend cash from the balance sheet, or borrow the money. FDM Group (Holdings) is already paying out 120% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. Should investors buy FDM Group (Holdings) for the upcoming dividend? It's looking like an unattractive opportunity, with its earnings per share declining, while, paying out an uncomfortably high percentage of both its profits (120%) and cash flow as dividends. This is a starkly negative combination that often suggests a dividend cut could be in the company's near future. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being. With that in mind though, if the poor dividend characteristics of FDM Group (Holdings) don't faze you, it's worth being mindful of the risks involved with this business. To help with this, we've discovered 2 warning signs for FDM Group (Holdings) that you should be aware of before investing in their 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-06-2025
- Business
- Yahoo
It Might Not Be A Great Idea To Buy FDM Group (Holdings) plc (LON:FDM) For Its Next Dividend
It looks like FDM Group (Holdings) plc (LON:FDM) is about to go ex-dividend in the next 3 days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the 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 FDM Group (Holdings)'s shares on or after the 5th of June, you won't be eligible to receive the dividend, when it is paid on the 27th of June. The company's next dividend payment will be UK£0.125 per share, on the back of last year when the company paid a total of UK£0.23 to shareholders. Last year's total dividend payments show that FDM Group (Holdings) has a trailing yield of 9.9% on the current share price of UK£2.27. If you buy this business for its dividend, you should have an idea of whether FDM Group (Holdings)'s dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. 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. FDM Group (Holdings) distributed an unsustainably high 120% of its profit as dividends to shareholders last year. Without more sustainable payment behaviour, the dividend looks precarious. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 110% of its free cash flow in the form of dividends last year, which is outside the comfort zone for most businesses. Companies usually need cash more than they need earnings - expenses don't pay themselves - so it's not great to see it paying out so much of its cash flow. FDM Group (Holdings) does have a large net cash position on the balance sheet, which could fund large dividends for a time, if the company so chose. Still, smart investors know that it is better to assess dividends relative to the cash and profit generated by the business. Paying dividends out of cash on the balance sheet is not long-term sustainable. Cash is slightly more important than profit from a dividend perspective, but given FDM Group (Holdings)'s payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend. See our latest analysis for FDM Group (Holdings) Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. Readers will understand then, why we're concerned to see FDM Group (Holdings)'s earnings per share have dropped 13% a year over the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, FDM Group (Holdings) has lifted its dividend by approximately 4.1% a year on average. The only way to pay higher dividends when earnings are shrinking is either to pay out a larger percentage of profits, spend cash from the balance sheet, or borrow the money. FDM Group (Holdings) is already paying out 120% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. Should investors buy FDM Group (Holdings) for the upcoming dividend? It's looking like an unattractive opportunity, with its earnings per share declining, while, paying out an uncomfortably high percentage of both its profits (120%) and cash flow as dividends. This is a starkly negative combination that often suggests a dividend cut could be in the company's near future. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being. With that in mind though, if the poor dividend characteristics of FDM Group (Holdings) don't faze you, it's worth being mindful of the risks involved with this business. To help with this, we've discovered 2 warning signs for FDM Group (Holdings) that you should be aware of before investing in their 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
