Olympia Financial Group Inc. (TSE:OLY) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Simply Wall St · 04/14 12:42

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Olympia Financial Group Inc. (TSE:OLY) is about to trade ex-dividend in the next 2 days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Thus, you can purchase Olympia Financial Group's shares before the 17th of April in order to receive the dividend, which the company will pay on the 30th of April.

The company's next dividend payment will be CA$0.60 per share. Last year, in total, the company distributed CA$7.20 to shareholders. Looking at the last 12 months of distributions, Olympia Financial Group has a trailing yield of approximately 7.0% on its current stock price of CA$103.00. 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! So we need to investigate whether Olympia Financial Group can afford its dividend, and if the dividend could grow.

Our free stock report includes 3 warning signs investors should be aware of before investing in Olympia Financial Group. Read for free now.

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Olympia Financial Group paid out more than half (72%) of its earnings last year, which is a regular payout ratio for most companies.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

Check out our latest analysis for Olympia Financial Group

Click here to see how much of its profit Olympia Financial Group paid out over the last 12 months.

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TSX:OLY Historic Dividend April 14th 2025

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. It's encouraging to see Olympia Financial Group has grown its earnings rapidly, up 20% a year for the past five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Olympia Financial Group has delivered 11% dividend growth per year on average over the past 10 years. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

Final Takeaway

Should investors buy Olympia Financial Group for the upcoming dividend? Earnings per share are growing at an attractive rate, and Olympia Financial Group is paying out a bit over half its profits. Overall, Olympia Financial Group looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. For example, Olympia Financial Group has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.