There's A Lot To Like About Administradora de Fondos de Pensiones PlanVital's (SNSE:PLANVITAL) Upcoming CL$7.5389 Dividend

It looks like Administradora de Fondos de Pensiones PlanVital S.A. (SNSE:PLANVITAL) is about to go ex-dividend in the next 4 days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Meaning, you will need to purchase Administradora de Fondos de Pensiones PlanVital's shares before the 5th of December to receive the dividend, which will be paid on the 11th of December.

The company's next dividend payment will be CL$7.5389 per share, on the back of last year when the company paid a total of CL$13.22 to shareholders. Based on the last year's worth of payments, Administradora de Fondos de Pensiones PlanVital has a trailing yield of 4.3% on the current stock price of CL$309.12. If you buy this business for its dividend, you should have an idea of whether Administradora de Fondos de Pensiones PlanVital's dividend is reliable and sustainable. So we need to investigate whether Administradora de Fondos de Pensiones PlanVital can afford its dividend, and if the dividend could grow.

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Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Administradora de Fondos de Pensiones PlanVital has a low and conservative payout ratio of just 19% 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 Administradora de Fondos de Pensiones PlanVital

Click here to see how much of its profit Administradora de Fondos de Pensiones PlanVital paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. 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 Administradora de Fondos de Pensiones PlanVital's earnings per share have risen 18% per annum over the last five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Administradora de Fondos de Pensiones PlanVital has delivered 86% dividend growth per year on average over the past eight years. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

The Bottom Line

Has Administradora de Fondos de Pensiones PlanVital got what it takes to maintain its dividend payments? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. Overall, Administradora de Fondos de Pensiones PlanVital looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Our analysis shows 1 warning sign for Administradora de Fondos de Pensiones PlanVital 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.