Yahoo Finance Read This Before Considering Marlin Global Limited (NZSE:MLN) For Its Upcoming NZ$0.021 Dividend
It looks like Marlin Global Limited (NZSE:MLN) is about to go ex-dividend in the next 3 days. You will need to purchase shares before the 9th of September to receive the dividend, which will be paid on the 25th of September.
Marlin Global's next dividend payment will be NZ$0.021 per share, on the back of last year when the company paid a total of NZ$0.08 to shareholders. Looking at the last 12 months of distributions, Marlin Global has a trailing yield of approximately 6.9% on its current stock price of NZ$1.16. If you buy this business for its dividend, you should have an idea of whether Marlin Global's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.
See our latest analysis for Marlin Global
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Marlin Global is paying out an acceptable 53% of its profit, a common payout level among most companies.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
Click here to see how much of its profit Marlin Global paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. 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.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Marlin Global has lifted its dividend by approximately 15% 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
From a dividend perspective, should investors buy or avoid Marlin Global? 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.
With that being said, if dividends aren't your biggest concern with Marlin Global, you should know about the other risks facing this business. Case in point: We've spotted 1 warning sign for Marlin Global you should be aware of.
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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