Payment Financial Technologies Ltd (TLV:PMNT) Passed Our Checks, And It's About To Pay A ₪0.0508954 Dividend
It looks like Payment Financial Technologies Ltd (TLV:PMNT) is about to go ex-dividend in the next 3 days. 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 as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Payment Financial Technologies' shares before the 2nd of September to receive the dividend, which will be paid on the 17th of September.
The company's next dividend payment will be ₪0.0508954 per share, on the back of last year when the company paid a total of ₪0.23 to shareholders. Based on the last year's worth of payments, Payment Financial Technologies has a trailing yield of 4.3% on the current stock price of ₪5.275. 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. Payment Financial Technologies paid out a comfortable 27% of its profit last year.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
See our latest analysis for Payment Financial Technologies
Click here to see how much of its profit Payment Financial Technologies paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. 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 Payment Financial Technologies's earnings have been skyrocketing, up 116% per annum for the past five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last four years, Payment Financial Technologies has lifted its dividend by approximately 29% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.
Final Takeaway
Is Payment Financial Technologies an attractive dividend stock, or better left on the shelf? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. In summary, Payment Financial Technologies appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
In light of that, while Payment Financial Technologies has an appealing dividend, it's worth knowing the risks involved with this stock. We've identified 3 warning signs with Payment Financial Technologies (at least 1 which is potentially serious), and understanding these should be part of your investment process.
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.