Investeringsselskabet Luxor A/S (CPH:LUXOR B) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Readers hoping to buy Investeringsselskabet Luxor A/S (CPH:LUXOR B) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. If you purchase the stock on or after the 1st of February, you won't be eligible to receive this dividend, when it is paid on the 3rd of February.

Investeringsselskabet Luxor's next dividend payment will be kr.25.00 per share. Last year, in total, the company distributed kr.25.00 to shareholders. Calculating the last year's worth of payments shows that Investeringsselskabet Luxor has a trailing yield of 5.1% on the current share price of DKK492. 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.

Check out our latest analysis for Investeringsselskabet Luxor

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Investeringsselskabet Luxor is paying out an acceptable 69% of its profit, a common payout level among most companies.

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 Investeringsselskabet Luxor paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. That's why it's comforting to see Investeringsselskabet Luxor's earnings have been skyrocketing, up 25% 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. Since the start of our data, seven years ago, Investeringsselskabet Luxor has lifted its dividend by approximately 23% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

Final Takeaway

Has Investeringsselskabet Luxor got what it takes to maintain its dividend payments? Earnings per share are growing at an attractive rate, and Investeringsselskabet Luxor is paying out a bit over half its profits. Investeringsselskabet Luxor ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Every company has risks, and we've spotted 2 warning signs for Investeringsselskabet Luxor you should know about.

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting 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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