Deyaar Development PJSC (DFM:DEYAAR) Could Be A Buy For Its Upcoming Dividend

Deyaar Development PJSC (DFM:DEYAAR) is about to trade ex-dividend in the next 3 days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible 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. Thus, you can purchase Deyaar Development PJSC's shares before the 25th of April in order to receive the dividend, which the company will pay on the 7th of May.

The company's upcoming dividend is د.إ0.05 a share, following on from the last 12 months, when the company distributed a total of د.إ0.04 per share to shareholders. Last year's total dividend payments show that Deyaar Development PJSC has a trailing yield of 4.3% on the current share price of د.إ0.929. If you buy this business for its dividend, you should have an idea of whether Deyaar Development PJSC's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.

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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. Deyaar Development PJSC paid out a comfortable 33% of its profit last year.

View our latest analysis for Deyaar Development PJSC

Click here to see how much of its profit Deyaar Development PJSC 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. That's why it's comforting to see Deyaar Development PJSC's earnings have been skyrocketing, up 46% per annum for the past five years. Earnings per share have been growing very quickly, and the company is paying out a relatively low percentage of its profit and cash flow. This is a very favourable combination that can often lead to the dividend multiplying over the long term, if earnings grow and the company pays out a higher percentage of its earnings.

Given that Deyaar Development PJSC has only been paying a dividend for a year, there's not much of a past history to draw insight from.

To Sum It Up

Is Deyaar Development PJSC worth buying for its dividend? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. Overall, Deyaar Development PJSC looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

Want to learn more about Deyaar Development PJSC's dividend performance? Check out this visualisation of its historical revenue and earnings growth.

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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.