Costamare Inc. (NYSE:CMRE) is set to trade ex-dividend in the next four days. The ex-dividend date is one business day before the company’s record date, which determines the shareholders entitled to receive a dividend. Missing the ex-dividend date means you won’t be eligible for the dividend payment on August 6th if you buy Costamare’s shares on or after July 19th.
The upcoming dividend payment will be US$0.115 per share, with a trailing yield of 3.0% based on last year’s total payout of US$0.46. It’s important to assess whether Costamare’s dividend is reliable and sustainable by checking if the company has been able to grow its dividends or if a cut is possible.
Costamare paid out 18% of its profit and 60% of its free cash flow last year, indicating a sustainable dividend. Earnings per share have been growing at 51% annually for the past five years. However, the dividend has decreased by 8.2% per year over the last decade, despite improving earnings per share.
Investors should consider the risks involved in investing for dividends alone and be aware of the company’s warning signs. While Costamare shows promise, thorough analysis is recommended. It’s always advisable to assess valuation, risks, dividends, insider transactions, and financial health before making investment decisions.