GQG Partners Inc. (ASX:GQG) Stock Goes Ex-Dividend In Just One Day

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see GQG Partners Inc. (ASX:GQG) is about to trade ex-dividend in the next day or so. 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. Accordingly, GQG Partners investors that purchase the stock on or after the 21st of February will not receive the dividend, which will be paid on the 27th of March.

The company's upcoming dividend is US$0.026 a share, following on from the last 12 months, when the company distributed a total of US$0.091 per share to shareholders. Based on the last year's worth of payments, GQG Partners stock has a trailing yield of around 6.3% on the current share price of AU$2.20. 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! So we need to check whether the dividend payments are covered, and if earnings are growing.

See our latest analysis for GQG Partners

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. GQG Partners has a low and conservative payout ratio of just 1.1% of its income after tax.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. GQG Partners's earnings have collapsed faster than Wile E Coyote's schemes to trap the Road Runner; down a tremendous 69% a year over the past three years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, two years ago, GQG Partners has lifted its dividend by approximately 22% a year on average.

Final Takeaway

Is GQG Partners an attractive dividend stock, or better left on the shelf? Earnings per share have shrunk noticeably in recent years, although we like that the company has a low payout ratio. This could suggest a cut to the dividend may not be a major risk in the near future. We think there are likely better opportunities out there.

If you want to look further into GQG Partners, it's worth knowing the risks this business faces. For example - GQG Partners has 1 warning sign we think you should be aware of.

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.