Yahoo Finance Marlin Global Limited (NZSE:MLN) Goes Ex-Dividend Soon
Readers hoping to buy Marlin Global Limited (NZSE:MLN) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Investors can purchase shares before the 2nd of December in order to be eligible for this dividend, which will be paid on the 18th of December.
Marlin Global's next dividend payment will be NZ$0.022 per share. Last year, in total, the company distributed NZ$0.08 to shareholders. Last year's total dividend payments show that Marlin Global has a trailing yield of 6.2% on the current share price of NZ$1.3. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Marlin Global has been able to grow its dividends, or if the dividend might be cut.
View our latest analysis for Marlin Global
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. Marlin Global is paying out an acceptable 53% of its profit, a common payout level among most companies.
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.
Click here to see how much of its profit Marlin Global 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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're encouraged by the steady growth at Marlin Global, with earnings per share up 2.3% on average over the last five years.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Marlin Global's dividend payments are broadly unchanged compared to where they were 10 years ago.
The Bottom Line
Has Marlin Global got what it takes to maintain its dividend payments? Marlin Global has been generating some growth in earnings per share while paying out more than half of its earnings to shareholders in the form of dividends. We think there are likely better opportunities out there.
However if you're still interested in Marlin Global as a potential investment, you should definitely consider some of the risks involved with Marlin Global. Every company has risks, and we've spotted 1 warning sign for Marlin Global you should know about.
We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. 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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