BR Advisory Partners Participações S.A. (BVMF:BRBI11) Looks Interesting, And It's About To Pay A Dividend

It looks like BR Advisory Partners Participações S.A. (BVMF:BRBI11) is about to go ex-dividend in the next two 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. In other words, investors can purchase BR Advisory Partners Participações' shares before the 17th of August in order to be eligible for the dividend, which will be paid on the 31st of August.

The company's next dividend payment will be R$0.24 per share, on the back of last year when the company paid a total of R$0.87 to shareholders. Calculating the last year's worth of payments shows that BR Advisory Partners Participações has a trailing yield of 5.4% on the current share price of R$16.15. If you buy this business for its dividend, you should have an idea of whether BR Advisory Partners Participações's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

Check out our latest analysis for BR Advisory Partners Participações

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. BR Advisory Partners Participações paid out 65% of its earnings to investors last year, a normal payout level for most businesses.

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?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. It's encouraging to see BR Advisory Partners Participações has grown its earnings rapidly, up 33% a year for the past five years.

Given that BR Advisory Partners Participações has only been paying a dividend for a year, there's not much of a past history to draw insight from.

Final Takeaway

Is BR Advisory Partners Participações an attractive dividend stock, or better left on the shelf? BR Advisory Partners Participações has an acceptable payout ratio and its earnings per share have been improving at a decent rate. In summary, BR Advisory Partners Participações appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. To help with this, we've discovered 3 warning signs for BR Advisory Partners Participações (1 is significant!) that you ought to be aware of before buying the shares.

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.