Regular readers will know we love our dividends at Simply Wall St, which is why it’s exciting to see Analyst IMS Investment Management Services Ltd (TLV:ANLT) is set to trade ex-dividend in the next three days. The ex-dividend date is one business day before the record date, which is the latest date by which shareholders must be present on the books of the company to be eligible for payment of a dividend. The ex-dividend date is important because the settlement process involves two full business days. So if you miss this date, you will not be on the company’s books as of the record date. Therefore, if you buy shares of Analyst IMS Investment Management Services on or after April 10, you will not be eligible to receive the dividend when it is paid on April 26.
The company’s next dividend payment will be ₪0.45 per share, and in the past 12 months the company has paid a total of ₪0.45 per share. Last year’s total dividend payouts show analyst IMS Investment Management Services has a yield of 1.2% on the current share price of ₪38.31. Dividends are an important source of income for many shareholders, but the health of the company is essential to sustaining those dividends. We therefore need to consider whether Analyst IMS Investment Management Services can afford its dividend, and whether the dividend could increase.
Check out our latest analysis for Analyst IMS Investment Management Services
Dividends are usually paid out of company profits, so if a company pays out more than it has earned, its dividend is usually at risk of being reduced. Its dividend payout ratio is 76% of earnings, meaning the company pays out the majority of its earnings. The relatively limited reinvestment of earnings could slow the rate of future earnings growth. We would be concerned about the risk of a drop in income.
Generally speaking, the lower a company’s payout ratios, the more resilient its dividend tends to be.
Click here to see how much profit the analyst IMS Investment Management Services has paid out over the past 12 months.
Have earnings and dividends increased?
Stocks of companies that generate sustainable earnings growth often offer the best dividend prospects because it is easier to increase the dividend when earnings increase. Investors love dividends, so if earnings fall and the dividend is cut, expect a stock to sell heavily at the same time. That’s why it’s heartening to see that Analyst IMS Investment Management Services’ revenues have skyrocketed, growing 31% annually over the past five years.
Most investors primarily gauge a company’s dividend prospects by checking the historical rate of dividend growth. Dividend payouts per share from analyst IMS Investment Management Services have fallen 23% per year on average over the past 10 years, which is uninspiring. It is unusual to see earnings per share increase at the same time as dividends per share decrease. We’re hoping that’s because the company is reinvesting heavily in its business, but it could also suggest that business is lumpy.
IMS Investment Management Services Analyst Worth Buying For Its Dividend? Earnings per share are growing at an attractive pace and analyst IMS Investment Management Services is paying just over half of its earnings. Overall, analyst IMS Investment Management Services looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.
On that note, you’ll want to research the risks IMS Investment Management Services analyst faces. For example, we found 2 warning signs for Analyst IMS Investment Management Services which we recommend you consider before investing in the company.
As a general rule, we don’t recommend simply buying the first dividend-paying stock you see. here is a curated list of attractive stocks that are strong dividend payers.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.