Interested In Marwest Apartment Real Estate Investment Trust's (CVE:MAR.UN) Upcoming CA$0.001425 Dividend? You Have Four Days Left

It looks like Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) is about to go ex-dividend in the next four 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. 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. In other words, investors can purchase Marwest Apartment Real Estate Investment Trust's shares before the 29th of August in order to be eligible for the dividend, which will be paid on the 15th of September.

The company's upcoming dividend is CA$0.001425 a share, following on from the last 12 months, when the company distributed a total of CA$0.017 per share to shareholders. Based on the last year's worth of payments, Marwest Apartment Real Estate Investment Trust stock has a trailing yield of around 2.4% on the current share price of CA$0.71. If you buy this business for its dividend, you should have an idea of whether Marwest Apartment Real Estate Investment Trust's dividend is reliable and sustainable. As a result, readers should always check whether Marwest Apartment Real Estate Investment Trust has been able to grow its dividends, or if the dividend might be cut.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

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. Marwest Apartment Real Estate Investment Trust is paying out just 1.7% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

View our latest analysis for Marwest Apartment Real Estate Investment Trust

Click here to see how much of its profit Marwest Apartment Real Estate Investment Trust paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. So we're not too excited that Marwest Apartment Real Estate Investment Trust's earnings are down 4.3% a year over the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last four years, Marwest Apartment Real Estate Investment Trust has lifted its dividend by approximately 3.3% a year on average.

The Bottom Line

Has Marwest Apartment Real Estate Investment Trust got what it takes to maintain its dividend payments? Earnings per share have shrunk noticeably in recent years, although we like that the company has a low payout ratio. This could suggest a cut to the dividend may not be a major risk in the near future. It might be worth researching if the company is reinvesting in growth projects that could grow earnings and dividends in the future, but for now we're on the fence about its dividend prospects.

If you're not too concerned about Marwest Apartment Real Estate Investment Trust's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. Every company has risks, and we've spotted 3 warning signs for Marwest Apartment Real Estate Investment Trust (of which 1 is a bit unpleasant!) you should know about.

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.