mwb fairtrade Wertpapierhandelsbank AG (ETR:MWB) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

mwb fairtrade Wertpapierhandelsbank AG (ETR:MWB) is about to trade ex-dividend in the next 4 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 of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Accordingly, mwb fairtrade Wertpapierhandelsbank investors that purchase the stock on or after the 16th of July will not receive the dividend, which will be paid on the 20th of July.

The company's upcoming dividend is €1.80 a share, following on from the last 12 months, when the company distributed a total of €1.80 per share to shareholders. Based on the last year's worth of payments, mwb fairtrade Wertpapierhandelsbank has a trailing yield of 8.3% on the current stock price of €21.8. If you buy this business for its dividend, you should have an idea of whether mwb fairtrade Wertpapierhandelsbank's dividend is reliable and sustainable. As a result, readers should always check whether mwb fairtrade Wertpapierhandelsbank has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for mwb fairtrade Wertpapierhandelsbank

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. It paid out 76% of its earnings as dividends last year, which is not unreasonable, but limits reinvestment in the business and leaves the dividend vulnerable to a business downturn. We'd be worried about the risk of a drop in earnings.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

Click here to see how much of its profit mwb fairtrade Wertpapierhandelsbank 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 earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That's why it's comforting to see mwb fairtrade Wertpapierhandelsbank's earnings have been skyrocketing, up 89% per annum for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. mwb fairtrade Wertpapierhandelsbank has delivered 105% dividend growth per year on average over the past five years. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

Final Takeaway

From a dividend perspective, should investors buy or avoid mwb fairtrade Wertpapierhandelsbank? mwb fairtrade Wertpapierhandelsbank has an acceptable payout ratio and its earnings per share have been improving at a decent rate. In summary, mwb fairtrade Wertpapierhandelsbank appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. For example, we've found 2 warning signs for mwb fairtrade Wertpapierhandelsbank that we recommend you consider before investing in the business.

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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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