HF Company SA (EPA:ALHF) is set to go ex-dividend in the next 3 days. The ex-dividend date is typically one business day before the record date, which is when the company determines the shareholders eligible to receive a dividend. Investors who purchase HF Company’s shares on or after the 3rd of July will not receive the dividend, which will be paid on the 5th of July. The company’s next dividend payment will be €0.50 per share, with a trailing yield of approximately 9.4% on its current stock price of €5.30.
Dividends are an important source of income for many shareholders, but it is crucial to assess whether the dividend is covered by earnings and if it is growing. HF Company paid a dividend last year despite being unprofitable, which may not be sustainable in the long run. The company paid out an unsustainably high 814% of its free cash flow as dividends over the past 12 months, raising concerns about the future sustainability of the dividend.
Businesses with strong growth prospects are usually the best dividend payers, as it is easier to grow dividends when earnings per share are improving. HF Company was unprofitable last year, but there is a general trend of improving earnings over the past five years. However, an unprofitable company with a slow business recovery may not be a suitable option for dividend investors.
It is important to analyze a company’s dividend performance by evaluating how dividend payments have changed over time. HF Company’s dividends appear to be largely the same as they were 10 years ago. Investors should carefully consider the risks associated with investing in HF Company, as there are 2 warning signs identified in the investment analysis.
In conclusion, while HF Company may not be a bad company, its characteristics may not lead to outstanding dividend performance. Investors should conduct thorough research and consider all risks before investing in dividend stocks.