United Bankers Oyj (HEL:UNITED) Will Pay A €0.58 Dividend In Three Days
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that United Bankers Oyj (HEL:UNITED) is about to go ex-dividend in just three days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order 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. This means that investors who purchase United Bankers Oyj's shares on or after the 24th of September will not receive the dividend, which will be paid on the 2nd of October.
The company's next dividend payment will be €0.58 per share. Last year, in total, the company distributed €1.16 to shareholders. Based on the last year's worth of payments, United Bankers Oyj has a trailing yield of 4.8% on the current stock price of €24.40. 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! As a result, readers should always check whether United Bankers Oyj has been able to grow its dividends, or if the dividend might be cut.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Last year United Bankers Oyj paid out 106% of its profits as dividends to shareholders, suggesting the dividend is not well covered by earnings.
When a company pays out a dividend that is not well covered by profits, the dividend is generally seen as more vulnerable to being cut.
See our latest analysis for United Bankers Oyj
Click here to see how much of its profit United Bankers Oyj 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. Fortunately for readers, United Bankers Oyj's earnings per share have been growing at 13% a year 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 past 10 years, United Bankers Oyj has increased its dividend at approximately 9.7% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
The Bottom Line
Is United Bankers Oyj an attractive dividend stock, or better left on the shelf? It's been growing earnings per share at a pleasant rate, although its dividend payout was not well covered by earnings. It doesn't appear an outstanding opportunity, but could be worth a closer look.
So if you want to do more digging on United Bankers Oyj, you'll find it worthwhile knowing the risks that this stock faces. For example, we've found 1 warning sign for United Bankers Oyj that we recommend you consider before investing in the business.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.