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Just Four Days Till Taylor Maritime Investments Limited (LON:TMI) Will Be Trading Ex-Dividend

Taylor Maritime Investments Limited (LON:TMI) stock is about to trade ex-dividend in four days. The ex-dividend date occurs one day 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 of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Accordingly, Taylor Maritime Investments investors that purchase the stock on or after the 9th of February will not receive the dividend, which will be paid on the 28th of February.

The company's next dividend payment will be US$0.02 per share, and in the last 12 months, the company paid a total of US$0.08 per share. Last year's total dividend payments show that Taylor Maritime Investments has a trailing yield of 7.0% on the current share price of $1.14. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether Taylor Maritime Investments can afford its dividend, and if the dividend could grow.

Check out our latest analysis for Taylor Maritime Investments

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. Taylor Maritime Investments paid out just 19% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.

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Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see how much of its profit Taylor Maritime Investments paid out over the last 12 months.

historic-dividend
historic-dividend

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke.

Given that Taylor Maritime Investments has only been paying a dividend for a year, there's not much of a past history to draw insight from.

Final Takeaway

Has Taylor Maritime Investments got what it takes to maintain its dividend payments? It might be worth researching if the company is reinvesting in growth projects that could grow earnings and dividends in the future, but for now we're on the fence about its dividend prospects.

With that being said, if dividends aren't your biggest concern with Taylor Maritime Investments, you should know about the other risks facing this business. To that end, you should learn about the 3 warning signs we've spotted with Taylor Maritime Investments (including 1 which is potentially serious).

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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