Al Fujairah National Insurance Company P.J.S.C (ADX:AFNIC) Passed Our Checks, And It's About To Pay A د.إ15.00 Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Al Fujairah National Insurance Company P.J.S.C (ADX:AFNIC) is about to trade ex-dividend in the next three days. Investors can purchase shares before the 29th of April in order to be eligible for this dividend, which will be paid on the 1st of January.

Al Fujairah National Insurance Company P.J.S.C's next dividend payment will be د.إ15.00 per share. Last year, in total, the company distributed د.إ15.00 to shareholders. Calculating the last year's worth of payments shows that Al Fujairah National Insurance Company P.J.S.C has a trailing yield of 6.1% on the current share price of AED247.9. 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 Al Fujairah National Insurance Company P.J.S.C can afford its dividend, and if the dividend could grow.

Check out our latest analysis for Al Fujairah National Insurance Company P.J.S.C

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. Fortunately Al Fujairah National Insurance Company P.J.S.C's payout ratio is modest, at just 49% of profit.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see how much of its profit Al Fujairah National Insurance Company P.J.S.C paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. 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 comforting to see Al Fujairah National Insurance Company P.J.S.C's earnings have been skyrocketing, up 21% per annum for the past five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past six years, Al Fujairah National Insurance Company P.J.S.C has increased its dividend at approximately 16% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

Final Takeaway

Has Al Fujairah National Insurance Company P.J.S.C got what it takes to maintain its dividend payments? Companies like Al Fujairah National Insurance Company P.J.S.C that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. Al Fujairah National Insurance Company P.J.S.C 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.

While it's tempting to invest in Al Fujairah National Insurance Company P.J.S.C for the dividends alone, you should always be mindful of the risks involved. To help with this, we've discovered 2 warning signs for Al Fujairah National Insurance Company P.J.S.C that you should be aware of before investing in their shares.

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.

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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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