Guardian Capital Group Limited (TSE:GCG.A) Will Pay A CA$0.37 Dividend In Three Days

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Guardian Capital Group Limited (TSE:GCG.A) is about to trade ex-dividend in the next three days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Guardian Capital Group investors that purchase the stock on or after the 10th of January will not receive the dividend, which will be paid on the 17th of January.

The company's next dividend payment will be CA$0.37 per share, on the back of last year when the company paid a total of CA$1.48 to shareholders. Looking at the last 12 months of distributions, Guardian Capital Group has a trailing yield of approximately 3.4% on its current stock price of CA$43.01. If you buy this business for its dividend, you should have an idea of whether Guardian Capital Group'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.

View our latest analysis for Guardian Capital Group

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. That's why it's good to see Guardian Capital Group paying out a modest 33% of its earnings.

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?

When earnings decline, dividend companies become much harder to analyse and own safely. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're discomforted by Guardian Capital Group's 8.0% per annum decline in earnings in the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last 10 years, Guardian Capital Group has lifted its dividend by approximately 21% a year on average.

To Sum It Up

From a dividend perspective, should investors buy or avoid Guardian Capital Group? Guardian Capital Group's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. We think there are likely better opportunities out there.

If you want to look further into Guardian Capital Group, it's worth knowing the risks this business faces. To help with this, we've discovered 1 warning sign for Guardian Capital Group that you should be aware of before investing in their shares.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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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.