Fondul Proprietatea SA (BVB:FP) Will Pay A RON00.0408 Dividend In Three Days
It looks like Fondul Proprietatea SA (BVB:FP) is about to go ex-dividend in the next three days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Meaning, you will need to purchase Fondul Proprietatea's shares before the 14th of July to receive the dividend, which will be paid on the 6th of August.
The company's next dividend payment will be RON00.0408 per share. Last year, in total, the company distributed RON0.053 to shareholders. Calculating the last year's worth of payments shows that Fondul Proprietatea has a trailing yield of 8.4% on the current share price of RON00.629. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Fortunately Fondul Proprietatea's payout ratio is modest, at just 28% of profit.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
Check out our latest analysis for Fondul Proprietatea
Click here to see how much of its profit Fondul Proprietatea paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. Fondul Proprietatea's earnings per share have plummeted approximately 44% a year over the previous five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Fondul Proprietatea has delivered an average of 0.6% per year annual increase in its dividend, based on the past 10 years of dividend payments.
The Bottom Line
Is Fondul Proprietatea an attractive dividend stock, or better left on the shelf? Fondul Proprietatea's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. At best we would put it on a watch-list to see if business conditions improve, as it doesn't look like a clear opportunity right now.
If you want to look further into Fondul Proprietatea, it's worth knowing the risks this business faces. To help with this, we've discovered 2 warning signs for Fondul Proprietatea (1 can't be ignored!) that you ought to be aware of before buying the shares.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.