Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) Goes Ex-Dividend Soon

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Marwest Apartment Real Estate Investment Trust (CVE:MAR.UN) is about to go ex-dividend in just 4 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 of consequence because whenever a stock is bought or sold, the trade takes at least one business day to settle. Therefore, if you purchase Marwest Apartment Real Estate Investment Trust's shares on or after the 28th of November, you won't be eligible to receive the dividend, when it is paid on the 15th of December.

The company's next dividend payment will be CA$0.001425 per share, on the back of last year when the company paid a total of CA$0.017 to shareholders. Based on the last year's worth of payments, Marwest Apartment Real Estate Investment Trust has a trailing yield of 2.3% on the current stock price of CA$0.73. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.

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If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Marwest Apartment Real Estate Investment Trust has a low and conservative payout ratio of just 3.0% of its income after tax.

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?

When earnings decline, dividend companies become much harder to analyse and own safely. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Marwest Apartment Real Estate Investment Trust's earnings per share have fallen at approximately 20% a year over the previous five years. Such a sharp decline casts doubt on the future sustainability of the dividend.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the past four years, Marwest Apartment Real Estate Investment Trust has increased its dividend at approximately 3.3% a year on average.

The Bottom Line

From a dividend perspective, should investors buy or avoid Marwest Apartment Real Estate Investment Trust? Marwest Apartment Real Estate Investment Trust'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. It doesn't appear an outstanding opportunity, but could be worth a closer look.

If you want to look further into Marwest Apartment Real Estate Investment Trust, it's worth knowing the risks this business faces. For instance, we've identified 4 warning signs for Marwest Apartment Real Estate Investment Trust (2 don't sit too well with us) you should be aware of.

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.