There's A Lot To Like About Amanat Holdings PJSC's (DFM:AMANAT) Upcoming د.إ0.03 Dividend
Readers hoping to buy Amanat Holdings PJSC (DFM:AMANAT) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible 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 Amanat Holdings PJSC's shares before the 21st of August to receive the dividend, which will be paid on the .
The company's upcoming dividend is د.إ0.03 a share, following on from the last 12 months, when the company distributed a total of د.إ0.07 per share to shareholders. Last year's total dividend payments show that Amanat Holdings PJSC has a trailing yield of 4.7% on the current share price of د.إ1.48. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Its dividend payout ratio is 78% of profit, which means the company is paying out a majority of its earnings. The relatively limited profit reinvestment could slow the rate of future earnings growth. We'd be worried about the risk of a drop in earnings.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
See our latest analysis for Amanat Holdings PJSC
Click here to see how much of its profit Amanat Holdings PJSC paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's comforting to see Amanat Holdings PJSC's earnings have been skyrocketing, up 86% per annum for the past five years.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, Amanat Holdings PJSC has lifted its dividend by approximately 17% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.
The Bottom Line
From a dividend perspective, should investors buy or avoid Amanat Holdings PJSC? Earnings per share are growing nicely, and Amanat Holdings PJSC is paying out a percentage of its earnings that is around the average for dividend-paying stocks. We think this is a pretty attractive combination, and would be interested in investigating Amanat Holdings PJSC more closely.
So while Amanat Holdings PJSC looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. For example, Amanat Holdings PJSC has 3 warning signs (and 1 which is potentially serious) we think you should know about.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
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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.