Read This Before Considering Gielda Papierów Wartosciowych w Warszawie S.A. (WSE:GPW) For Its Upcoming zł3.40 Dividend
It looks like Gielda Papierów Wartosciowych w Warszawie S.A. (WSE:GPW) is about to go ex-dividend in the next three days. The ex-dividend date generally occurs two days 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 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, Gielda Papierów Wartosciowych w Warszawie investors that purchase the stock on or after the 22nd of July will not receive the dividend, which will be paid on the 6th of August.
The company's next dividend payment will be zł3.40 per share, on the back of last year when the company paid a total of zł3.40 to shareholders. Looking at the last 12 months of distributions, Gielda Papierów Wartosciowych w Warszawie has a trailing yield of approximately 3.2% on its current stock price of zł105.80. 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.
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. Gielda Papierów Wartosciowych w Warszawie is paying out an acceptable 67% of its profit, a common payout level among most companies.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
See our latest analysis for Gielda Papierów Wartosciowych w Warszawie
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
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. This is why it's a relief to see Gielda Papierów Wartosciowych w Warszawie earnings per share are up 7.1% per annum 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. Since the start of our data, 10 years ago, Gielda Papierów Wartosciowych w Warszawie has lifted its dividend by approximately 3.5% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
To Sum It Up
Has Gielda Papierów Wartosciowych w Warszawie got what it takes to maintain its dividend payments? Earnings per share have been growing at a reasonable rate, and the company is paying out a bit over half its earnings as dividends. It doesn't appear an outstanding opportunity, but could be worth a closer look.
However if you're still interested in Gielda Papierów Wartosciowych w Warszawie as a potential investment, you should definitely consider some of the risks involved with Gielda Papierów Wartosciowych w Warszawie. Every company has risks, and we've spotted 1 warning sign for Gielda Papierów Wartosciowych w Warszawie you should know about.
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.