Be Sure To Check Out Caixa Seguridade Participações S.A. (BVMF:CXSE3) Before It Goes Ex-Dividend

Caixa Seguridade Participações S.A. (BVMF:CXSE3) is about to trade ex-dividend in the next four days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the 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. In other words, investors can purchase Caixa Seguridade Participações' shares before the 28th of April in order to be eligible for the dividend, which will be paid on the 8th of May.

The company's next dividend payment will be R$0.50 per share. Last year, in total, the company distributed R$0.71 to shareholders. Based on the last year's worth of payments, Caixa Seguridade Participações stock has a trailing yield of around 7.3% on the current share price of R$9.71. 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! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

See our latest analysis for Caixa Seguridade Participações

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Its dividend payout ratio is 76% of profit, which means the company is paying out a majority of its earnings. The relatively limited profit reinvestment could slow the rate of future earnings growth. We'd be concerned if earnings began to decline.

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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. For this reason, we're glad to see Caixa Seguridade Participações's earnings per share have risen 17% per annum over the last five years.

Unfortunately Caixa Seguridade Participações has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

Final Takeaway

Is Caixa Seguridade Participações an attractive dividend stock, or better left on the shelf? Earnings per share are growing nicely, and Caixa Seguridade Participações is paying out a percentage of its earnings that is around the average for dividend-paying stocks. We think this is a pretty attractive combination, and would be interested in investigating Caixa Seguridade Participações more closely.

On that note, you'll want to research what risks Caixa Seguridade Participações is facing. Our analysis shows 1 warning sign for Caixa Seguridade Participações and you should be aware of it before buying any 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.