Mycronic AB (publ) (STO:MYCR) is set to trade ex-dividend in the next 4 days. The ex-dividend date is typically one business day before the record date, which is the deadline for being listed as a shareholder on the company’s books to receive the dividend. Missing the ex-dividend date means you won’t be included on the record date. To receive Mycronic’s dividend, you must purchase shares before May 10th, with the dividend payment scheduled for May 16th.
The upcoming dividend for Mycronic is kr04.50 per share, following a total distribution of kr4.50 per share to shareholders in the last 12 months. This results in a trailing yield of 1.2% based on the current share price of kr0386.80. It is important to assess the company’s financial health to ensure the sustainability of dividends.
Dividends are typically paid from company profits, so if a company pays out more than it earns, the dividend is at a higher risk of being reduced. Mycronic pays out a modest 33% of its earnings and only 19% of its free cash flow, indicating that the dividend is covered by both profit and cash flow.
Earnings and dividends growth are essential factors for dividend sustainability. Mycronic has shown an 11% annual growth in earnings per share over the last five years. The company has also increased its dividend by approximately 1.3% annually over the past nine years, although earnings per share have grown faster than dividends.
Overall, Mycronic seems to be an attractive dividend stock with a low payout ratio and growing earnings. While the dividend has been cut in the past, the current conservative approach to dividends is promising. It is recommended to conduct further research before investing, considering any potential risks the stock may face.