Just Three Days Till Sharjah Cement and Industrial Development Co. (PJSC) (ADX:SCIDC) Will Be Trading Ex-Dividend

Sharjah Cement and Industrial Development Co. (PJSC) (ADX:SCIDC) stock is about to trade ex-dividend in 3 days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. In other words, investors can purchase Sharjah Cement and Industrial Development (PJSC)'s shares before the 18th of April in order to be eligible for the dividend, which will be paid on the 9th of May.

The company's next dividend payment will be د.إ0.05 per share. Last year, in total, the company distributed د.إ0.05 to shareholders. Looking at the last 12 months of distributions, Sharjah Cement and Industrial Development (PJSC) has a trailing yield of approximately 6.8% on its current stock price of د.إ0.74. If you buy this business for its dividend, you should have an idea of whether Sharjah Cement and Industrial Development (PJSC)'s dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

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If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Sharjah Cement and Industrial Development (PJSC) paid out 96% of its earnings, which is more than we're comfortable with, unless there are mitigating circumstances.

View our latest analysis for Sharjah Cement and Industrial Development (PJSC)

Click here to see how much of its profit Sharjah Cement and Industrial Development (PJSC) 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 fall far enough, the company could be forced to cut its dividend. That's why it's comforting to see Sharjah Cement and Industrial Development (PJSC)'s earnings have been skyrocketing, up 21% per annum for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Sharjah Cement and Industrial Development (PJSC) has seen its dividend decline 4.0% per annum on average over the past 10 years, which is not great to see. Sharjah Cement and Industrial Development (PJSC) is a rare case where dividends have been decreasing at the same time as earnings per share have been improving. It's unusual to see, and could point to unstable conditions in the core business, or more rarely an intensified focus on reinvesting profits.

Final Takeaway

Has Sharjah Cement and Industrial Development (PJSC) got what it takes to maintain its dividend payments? Sharjah Cement and Industrial Development (PJSC) has been generating credible earnings per share growth, although its dividend payments were not adequately covered by earnings. Overall, Sharjah Cement and Industrial Development (PJSC) looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

So while Sharjah Cement and Industrial Development (PJSC) looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Every company has risks, and we've spotted 2 warning signs for Sharjah Cement and Industrial Development (PJSC) you should know about.

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.