There's A Lot To Like About Olympia Financial Group's (TSE:OLY) Upcoming CA$0.60 Dividend

It looks like Olympia Financial Group Inc. (TSE:OLY) is about to go ex-dividend in the next 3 days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase Olympia Financial Group's shares before the 19th of June in order to be eligible for the dividend, which will be paid on the 28th of June.

The company's upcoming dividend is CA$0.60 a share, following on from the last 12 months, when the company distributed a total of CA$7.20 per share to shareholders. Based on the last year's worth of payments, Olympia Financial Group stock has a trailing yield of around 7.3% on the current share price of CA$98.00. If you buy this business for its dividend, you should have an idea of whether Olympia Financial Group's dividend is reliable and sustainable. As a result, readers should always check whether Olympia Financial Group has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Olympia Financial Group

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Olympia Financial Group paid out 63% 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 how much of its profit Olympia Financial Group 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. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. For this reason, we're glad to see Olympia Financial Group's earnings per share have risen 20% per annum over the last five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, Olympia Financial Group has lifted its dividend by approximately 9.9% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

To Sum It Up

Should investors buy Olympia Financial Group for the upcoming dividend? Earnings per share are growing nicely, and Olympia Financial Group is paying out a percentage of its earnings that is around the average for dividend-paying stocks. In summary, Olympia Financial Group appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

On that note, you'll want to research what risks Olympia Financial Group is facing. To that end, you should learn about the 2 warning signs we've spotted with Olympia Financial Group (including 1 which can't be ignored).

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.

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