Be Sure To Check Out MPC Münchmeyer Petersen Capital AG (ETR:MPCK) Before It Goes Ex-Dividend

MPC Münchmeyer Petersen Capital AG (ETR:MPCK) stock is about to trade ex-dividend in four 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. Thus, you can purchase MPC Münchmeyer Petersen Capital's shares before the 14th of June in order to receive the dividend, which the company will pay on the 18th of June.

The company's next dividend payment will be €0.27 per share, on the back of last year when the company paid a total of €0.27 to shareholders. Last year's total dividend payments show that MPC Münchmeyer Petersen Capital has a trailing yield of 6.1% on the current share price of €4.46. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.

See our latest analysis for MPC Münchmeyer Petersen Capital

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. MPC Münchmeyer Petersen Capital paid out more than half (73%) of its earnings last year, which is a regular payout ratio for most companies.

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.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

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. It's encouraging to see MPC Münchmeyer Petersen Capital has grown its earnings rapidly, up 70% a year for the past five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last two years, MPC Münchmeyer Petersen Capital has lifted its dividend by approximately 50% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

Final Takeaway

Is MPC Münchmeyer Petersen Capital worth buying for its dividend? Earnings per share are growing at an attractive rate, and MPC Münchmeyer Petersen Capital is paying out a bit over half its profits. In summary, MPC Münchmeyer Petersen Capital appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

So while MPC Münchmeyer Petersen Capital looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. For example - MPC Münchmeyer Petersen Capital has 1 warning sign we think you should be aware of.

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.