Investors looking to purchase Notoria Serwis S.A. (WSE:NTS) for its dividend should act quickly as the stock is set to trade ex-dividend soon. The ex-dividend date is typically one business day before the record date, which is when the company determines which shareholders are eligible to receive the dividend. To receive the dividend, investors must buy Notoria Serwis’ shares before July 5th, as the dividend will be paid on July 22nd.
The company’s next dividend payment will be zł0.22 per share, with a trailing yield of approximately 4.2% based on the current stock price of zł5.25. It is important to note that dividends are an essential source of income for many shareholders, but it is crucial to assess whether the dividend is covered by earnings and if it is growing.
Notoria Serwis paid out 95% of its income as dividends last year, which is a level that may signal higher risk, especially if the company needs to reinvest in its business. When the dividend payout ratio is high, there is a greater risk of the dividend being cut in the future.
Earnings growth is a key factor in determining a company’s dividend prospects. Notoria Serwis has seen an 8.1% increase in earnings per share annually over the last five years. However, the company’s dividend payments per share have declined by 9.8% per year on average over the past three years, which could indicate unstable conditions within the business.
In conclusion, while Notoria Serwis has been growing earnings per share at a reasonable rate, its dividend was not well covered by earnings in the last year. This may suggest that the company is not a strong candidate for dividend-focused investors. It is important to consider the risks associated with investing in Notoria Serwis before making a decision.