Here's What We Like About Eleven Capital AD's (BUL:11C) Upcoming Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Eleven Capital AD (BUL:11C) is about to go ex-dividend in just 4 days. 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. 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. Accordingly, Eleven Capital AD investors that purchase the stock on or after the 8th of July will not receive the dividend, which will be paid on the 1st of January.

The company's next dividend payment will be лв0.60 per share, and in the last 12 months, the company paid a total of лв0.40 per share. Based on the last year's worth of payments, Eleven Capital AD stock has a trailing yield of around 2.2% on the current share price of лв17.80. If you buy this business for its dividend, you should have an idea of whether Eleven Capital AD's dividend is reliable and sustainable. As a result, readers should always check whether Eleven Capital AD has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Eleven Capital AD

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Eleven Capital AD has a low and conservative payout ratio of just 8.8% of its income after tax.

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 Eleven Capital AD 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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's encouraging to see Eleven Capital AD has grown its earnings rapidly, up 43% a year 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. Eleven Capital AD's dividend payments are effectively flat on where they were two years ago.

To Sum It Up

Has Eleven Capital AD got what it takes to maintain its dividend payments? Companies like Eleven Capital AD that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their 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. We think this is a pretty attractive combination, and would be interested in investigating Eleven Capital AD more closely.

On that note, you'll want to research what risks Eleven Capital AD is facing. Case in point: We've spotted 4 warning signs for Eleven Capital AD 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com