Here's What We Like About Quirin Privatbank's (ETR:QB7) Upcoming Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Quirin Privatbank AG (ETR:QB7) 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase Quirin Privatbank's shares before the 10th of June to receive the dividend, which will be paid on the 12th of June.

The company's next dividend payment will be €0.11 per share, and in the last 12 months, the company paid a total of €0.11 per share. Last year's total dividend payments show that Quirin Privatbank has a trailing yield of 2.8% on the current share price of €3.88. 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 Quirin Privatbank

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Quirin Privatbank paid out a comfortable 49% of its profit last year.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see how much of its profit Quirin Privatbank paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, it's good to see earnings have grown 19% on last year.

One year is a very short time frame in the pantheon of investing, so we wouldn't get too hung up on these numbers.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Quirin Privatbank has delivered an average of 12% per year annual increase in its dividend, based on the past seven years of dividend payments. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

Final Takeaway

Is Quirin Privatbank an attractive dividend stock, or better left on the shelf? When companies are growing rapidly and retaining a majority of the profits within the business, it's usually a sign that reinvesting earnings creates more value than paying dividends to shareholders. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. Overall, Quirin Privatbank looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

In light of that, while Quirin Privatbank has an appealing dividend, it's worth knowing the risks involved with this stock. Our analysis shows 1 warning sign for Quirin Privatbank and you should be aware of this before buying any shares.

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.