Yahoo Finance Just Three Days Till BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877- (FRA:BLH) Will Be Trading Ex-Dividend
BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877- (FRA:BLH) is about to trade ex-dividend in the next three days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. This means that investors who purchase BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877-'s shares on or after the 13th of June will not receive the dividend, which will be paid on the 17th of June.
The company's next dividend payment will be €0.45 per share, and in the last 12 months, the company paid a total of €0.45 per share. Based on the last year's worth of payments, BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877- stock has a trailing yield of around 4.7% on the current share price of €9.50. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. We need to see whether the dividend is covered by earnings and if it's growing.
View our latest analysis for BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877-
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. It paid out 88% of its earnings as dividends last year, which is not unreasonable, but limits reinvestment in the business and leaves the dividend vulnerable to a business downturn. We'd be worried about the risk of a drop in earnings. A useful secondary check can be to evaluate whether BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877- generated enough free cash flow to afford its dividend. It paid out 21% of its free cash flow as dividends last year, which is conservatively low.
It's positive to see that BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877-'s dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
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. With that in mind, we're discomforted by BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877-'s 5.1% per annum decline in earnings in the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the past 10 years, BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877- has increased its dividend at approximately 1.2% a year on average.
The Bottom Line
From a dividend perspective, should investors buy or avoid BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877-? We're not enthused by the declining earnings per share, although at least the company's payout ratio is within a reasonable range, meaning it may not be at imminent risk of a dividend cut. Overall, it's not a bad combination, but we feel that there are likely more attractive dividend prospects out there.
With that being said, if dividends aren't your biggest concern with BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877-, you should know about the other risks facing this business. Every company has risks, and we've spotted 5 warning signs for BREMER LAGERHAUS-GESELLSCHAFT -Aktiengesellschaft von 1877- (of which 3 make us uncomfortable!) you should know about.
If you're in the market for strong dividend payers, we recommend checking our selection of top 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.
