Yahoo Finance 1 Days Left Before NV Bekaert SA (EBR:BEKB) Will Be Trading Ex-Dividend
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Important news for shareholders and potential investors in NV Bekaert SA (EBR:BEKB): The dividend payment of €0.49 per share will be distributed to shareholders on 13 May 2019, and the stock will begin trading ex-dividend at an earlier date, 09 May 2019. What does this mean for current shareholders and potential investors? Below, I will explain how holding NV Bekaert can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes.
See our latest analysis for NV Bekaert
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is their annual yield among the top 25% of dividend payers?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has dividend per share risen in the past couple of years?
Does earnings amply cover its dividend payments?
Will it be able to continue to payout at the current rate in the future?
Does NV Bekaert pass our checks?
The company currently pays out 99% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is not sufficiently covered by its earnings. In the near future, analysts are predicting a more sensible payout ratio of 41%, which, assuming the share price stays the same, leads to a dividend yield of 5.6%. Furthermore, EPS should increase to €2.77, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
If there's one type of stock you want to be reliable, it's dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view NV Bekaert as a dividend investment. It has only been consistently paying dividends for 9 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Relative to peers, NV Bekaert has a yield of 3.0%, which is on the low-side for Metals and Mining stocks.
Next Steps:
After digging a little deeper into NV Bekaert's yield, it's easy to see why you should be cautious investing in the company just for the dividend. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I've put together three pertinent factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for BEKB’s future growth? Take a look at our free research report of analyst consensus for BEKB’s outlook.
Valuation: What is BEKB worth today? Even if the stock is a cash cow, it's not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether BEKB is currently mispriced by the market.
Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
