Just Three Days Till ageas SA/NV (EBR:AGS) Will Be Trading Ex-Dividend

Readers hoping to buy ageas SA/NV (EBR:AGS) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Therefore, if you purchase ageas' shares on or after the 4th of December, you won't be eligible to receive the dividend, when it is paid on the 6th of December.

The company's next dividend payment will be €1.05 per share, and in the last 12 months, the company paid a total of €3.25 per share. Based on the last year's worth of payments, ageas has a trailing yield of 6.8% on the current stock price of €47.76. If you buy this business for its dividend, you should have an idea of whether ageas's dividend is reliable and sustainable. So we need to investigate whether ageas can afford its dividend, and if the dividend could grow.

Check out our latest analysis for ageas

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. ageas is paying out an acceptable 56% of its profit, a common payout level among most companies.

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

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

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. This is why it's a relief to see ageas earnings per share are up 7.1% per annum over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the past 10 years, ageas has increased its dividend at approximately 8.8% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

To Sum It Up

From a dividend perspective, should investors buy or avoid ageas? ageas has been generating some growth in earnings per share while paying out more than half of its earnings to shareholders in the form of dividends. It might be worth researching if the company is reinvesting in growth projects that could grow earnings and dividends in the future, but for now we're on the fence about its dividend prospects.

So if you want to do more digging on ageas, you'll find it worthwhile knowing the risks that this stock faces. For example - ageas has 1 warning sign we think you should be aware of.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.