Yahoo Finance Be Sure To Check Out BHB Brauholding Bayern-Mitte AG (FRA:B9B) Before It Goes Ex-Dividend
BHB Brauholding Bayern-Mitte AG (FRA:B9B) is about to trade ex-dividend in the next three days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. 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. Therefore, if you purchase BHB Brauholding Bayern-Mitte's shares on or after the 3rd of July, you won't be eligible to receive the dividend, when it is paid on the 5th of July.
The company's next dividend payment will be €0.05 per share, and in the last 12 months, the company paid a total of €0.05 per share. Based on the last year's worth of payments, BHB Brauholding Bayern-Mitte has a trailing yield of 1.9% on the current stock price of €2.58. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
See our latest analysis for BHB Brauholding Bayern-Mitte
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. BHB Brauholding Bayern-Mitte paid out a comfortable 44% of its profit last year.
Click here to see how much of its profit BHB Brauholding Bayern-Mitte 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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it's a relief to see BHB Brauholding Bayern-Mitte earnings per share are up 8.1% per annum over the last five years. The company is retaining more than half of its earnings within the business, and it has been growing earnings at a decent rate. Organisations that reinvest heavily in themselves typically get stronger over time, which can bring attractive benefits such as stronger earnings and dividends.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. BHB Brauholding Bayern-Mitte's dividend payments per share have declined at 2.0% per year on average over the past nine years, which is uninspiring. It's unusual to see earnings per share increasing at the same time as dividends per share have been in decline. We'd hope it's because the company is reinvesting heavily in its business, but it could also suggest business is lumpy.
Final Takeaway
Should investors buy BHB Brauholding Bayern-Mitte for the upcoming dividend? It has been growing its earnings per share somewhat in recent years, although it reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. BHB Brauholding Bayern-Mitte ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.
In light of that, while BHB Brauholding Bayern-Mitte has an appealing dividend, it's worth knowing the risks involved with this stock. To help with this, we've discovered 4 warning signs for BHB Brauholding Bayern-Mitte (1 is concerning!) that you ought to be aware of before buying the shares.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
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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.
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