Wiz Co Participações e Corretagem de Seguros S.A. (BVMF:WIZC3) Stock Goes Ex-Dividend In Just Three Days

Readers hoping to buy Wiz Co Participações e Corretagem de Seguros S.A. (BVMF:WIZC3) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. 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. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Wiz Co Participações e Corretagem de Seguros investors that purchase the stock on or after the 29th of December will not receive the dividend, which will be paid on the 31st of December.

The company's next dividend payment will be R$0.3160911 per share, and in the last 12 months, the company paid a total of R$0.25 per share. Based on the last year's worth of payments, Wiz Co Participações e Corretagem de Seguros has a trailing yield of 2.7% on the current stock price of R$9.01. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether Wiz Co Participações e Corretagem de Seguros can afford its dividend, and if the dividend could grow.

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Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Wiz Co Participações e Corretagem de Seguros has a low and conservative payout ratio of just 22% of its income after tax.

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.

See our latest analysis for Wiz Co Participações e Corretagem de Seguros

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. That's why it's not ideal to see Wiz Co Participações e Corretagem de Seguros's earnings per share have been shrinking at 2.3% a year over the previous five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Wiz Co Participações e Corretagem de Seguros has seen its dividend decline 19% per annum on average over the past seven years, which is not great to see. While it's not great that earnings and dividends per share have fallen in recent years, we're encouraged by the fact that management has trimmed the dividend rather than risk over-committing the company in a risky attempt to maintain yields to shareholders.

To Sum It Up

Is Wiz Co Participações e Corretagem de Seguros an attractive dividend stock, or better left on the shelf? Wiz Co Participações e Corretagem de Seguros's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. We think there are likely better opportunities out there.

Ever wonder what the future holds for Wiz Co Participações e Corretagem de Seguros? See what the three analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

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

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This 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.