There's A Lot To Like About Port Flot-Burgas AD's (BUL:PFB) Upcoming лв0.01 Dividend

It looks like Port Flot-Burgas AD (BUL:PFB) is about to go ex-dividend in the next three 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. Accordingly, Port Flot-Burgas AD investors that purchase the stock on or after the 19th of June will not receive the dividend, which will be paid on the 1st of August.

The company's upcoming dividend is лв0.01 a share, following on from the last 12 months, when the company distributed a total of лв0.04 per share to shareholders. Based on the last year's worth of payments, Port Flot-Burgas AD has a trailing yield of 0.5% on the current stock price of лв8.80. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Port Flot-Burgas AD can afford its dividend, and if the dividend could grow.

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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. Port Flot-Burgas AD paid out just 10.0% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.

See our latest analysis for Port Flot-Burgas AD

Click here to see how much of its profit Port Flot-Burgas AD 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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. It's encouraging to see Port Flot-Burgas AD has grown its earnings rapidly, up 23% a year for the past five years. Port Flot-Burgas AD looks like a real growth company, with earnings per share growing at a cracking pace and the company reinvesting most of its profits in the business.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last four years, Port Flot-Burgas AD has lifted its dividend by approximately 28% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

Final Takeaway

Is Port Flot-Burgas AD 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, Port Flot-Burgas AD looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

While it's tempting to invest in Port Flot-Burgas AD for the dividends alone, you should always be mindful of the risks involved. To help with this, we've discovered 2 warning signs for Port Flot-Burgas AD (1 is a bit concerning!) that you ought to be aware of before buying the shares.

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.