There are four days left to buy Mo-BRUK SA (WSE: MBR) before the ex-dividend date
Readers wishing to buy Mo-BRUK SA (WSE: MBR) for its dividend will have to act shortly, as the stock is about to trade ex-dividend. The ex-dividend date is generally set at one working day before the registration date which is the deadline by which you must be present in the books of the company as a shareholder to receive the dividend. The ex-dividend date is important because every time a stock is bought or sold, the transaction takes at least two business days to settle. Therefore, if you buy Mo-BRUK shares on or after June 15, you will not be able to receive the dividend when it is paid on June 30.
The company’s next dividend payment will be Z20.15 per share. Last year, in total, the company distributed 20.15 z to shareholders. Based on the value of last year’s payouts, the Mo-BRUK share has a rolling yield of approximately 5.9% on the current share price of PLN 339. If you are buying this company for its dividend, you should know if Mo-BRUK’s dividend is reliable and sustainable. You have to see if the dividend is covered by profits and if it increases.
Check out our latest review for Mo-BRUK
If a company pays more dividends than it has earned, then the dividend could become unsustainable – which is not an ideal situation. Its dividend payout ratio is 79% of profits, which means the company pays out the majority of its profits. The relatively limited reinvestment of earnings could slow the rate of future earnings growth. We would be concerned about the risk of falling earnings. A useful secondary check may be to assess whether Mo-BRUK has generated enough free cash flow to pay its dividend. Dividends consumed 52% of the company’s free cash flow last year, which is within a normal range for most dividend-paying organizations.
It is positive to see that Mo-BRUK’s dividend is covered by both earnings and cash flow, as this is usually a sign that the dividend is sustainable, and a lower payout ratio usually suggests a higher payout ratio. large safety margin before the dividend is cut.
Click here to see how much of its profits Mo-BRUK has paid in the last 12 months.
Have profits and dividends increased?
Stocks of companies that generate sustainable earnings growth often offer the best dividend prospects because it’s easier to raise the dividend when earnings rise. If profits fall and the company is forced to cut its dividend, investors could see the value of their investment go up in smoke. It is encouraging to see that Mo-BRUK has grown its profits rapidly, increasing 64% per year over the past five years. The company pays more than three-quarters of its profits, but it also generates strong profit growth.
Another key way to measure a company’s dividend outlook is to measure its historical rate of dividend growth. Mo-BRUK has recorded dividend growth of 173% per year on average over the past two years. It is exciting to see that earnings and dividends per share have grown rapidly over the past few years.
Is Mo-BRUK an attractive dividend-paying stock, or better still, is it left on hold? Higher earnings per share generally result in higher dividends for stocks paying long-term dividends. This is why we are happy to see Mo-BRUK’s earnings per share increase, even though, as we have seen, the company pays more than half of its earnings and cash flow – 79% and 52 % respectively. To sum up, Mo-BRUK looks good on this scan, even if it doesn’t seem like an exceptional opportunity.
In light of this, while Mo-BRUK has an attractive dividend, it is worth knowing the risks involved in this stock. To help you, we have discovered 1 warning sign for Mo-BRUK which you should know before investing in their stocks.
If you are in the dividend-paying stock market, we recommend that you check out our list of the highest dividend-paying stocks with a yield above 2% and a future dividend.
If you decide to trade Mo-BRUK, use the cheapest platform * which is ranked # 1 overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, currencies, bonds and funds in 135 markets, all from one integrated account.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.