Yahoo Finance Shurgard Self Storage S.A. (EBR:SHUR) Stock Goes Ex-Dividend In Just 1 Days
Shurgard Self Storage S.A. (EBR:SHUR) stock is about to trade ex-dividend in 1 days time. You can purchase shares before the 13th of May in order to receive the dividend, which the company will pay on the 15th of May.
Shurgard Self Storage's next dividend payment will be €0.35 per share. Last year, in total, the company distributed €1.00 to shareholders. Last year's total dividend payments show that Shurgard Self Storage has a trailing yield of 3.3% on the current share price of €30.1. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether Shurgard Self Storage can afford its dividend, and if the dividend could grow.
See our latest analysis for Shurgard Self Storage
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. Shurgard Self Storage paid out more than half (56%) of its earnings last year, which is a regular payout ratio for most companies. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It distributed 50% of its free cash flow as dividends, a comfortable payout level for most companies.
It's positive to see that Shurgard Self Storage'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.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
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. That's why it's not ideal to see Shurgard Self Storage's earnings per share have been shrinking at 3.8% a year over the previous five years.
Unfortunately Shurgard Self Storage has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.
The Bottom Line
From a dividend perspective, should investors buy or avoid Shurgard Self Storage? 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. While it does have some good things going for it, we're a bit ambivalent and it would take more to convince us of Shurgard Self Storage's dividend merits.
However if you're still interested in Shurgard Self Storage as a potential investment, you should definitely consider some of the risks involved with Shurgard Self Storage. For example - Shurgard Self Storage has 2 warning signs we think you should be aware of.
If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
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.
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. Thank you for reading.
