Yahoo Finance Banque Cantonale Vaudoise (VTX:BCVN) Will Pay A CHF04.30 Dividend In Four Days
It looks like Banque Cantonale Vaudoise (VTX:BCVN) is about to go ex-dividend in the next four days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Accordingly, Banque Cantonale Vaudoise investors that purchase the stock on or after the 29th of April will not receive the dividend, which will be paid on the 2nd of May.
The company's upcoming dividend is CHF04.30 a share, following on from the last 12 months, when the company distributed a total of CHF4.30 per share to shareholders. Last year's total dividend payments show that Banque Cantonale Vaudoise has a trailing yield of 4.2% on the current share price of CHF0101.40. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Banque Cantonale Vaudoise has been able to grow its dividends, or if the dividend might be cut.
Check out our latest analysis for Banque Cantonale Vaudoise
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. Its dividend payout ratio is 79% of profit, which means the company is paying out a majority of its earnings. The relatively limited profit reinvestment could slow the rate of future earnings growth. We'd be concerned if earnings began to decline.
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 Banque Cantonale Vaudoise 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. If earnings fall far enough, the company could be forced to cut its dividend. This is why it's a relief to see Banque Cantonale Vaudoise earnings per share are up 6.0% per annum 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. In the last 10 years, Banque Cantonale Vaudoise has lifted its dividend by approximately 3.0% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.
To Sum It Up
Is Banque Cantonale Vaudoise an attractive dividend stock, or better left on the shelf? Banque Cantonale Vaudoise 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. 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.
Want to learn more about Banque Cantonale Vaudoise? Here's a visualisation of its historical rate of revenue and earnings growth.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
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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.
