Desarrollos Especiales de Sistemas de Anclaje, S.A. (BME:DESA) Passed Our Checks, And It's About To Pay A €0.2274971 Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Desarrollos Especiales de Sistemas de Anclaje, S.A. (BME:DESA) is about to trade ex-dividend in the next 3 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. 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. Therefore, if you purchase Desarrollos Especiales de Sistemas de Anclaje's shares on or after the 11th of December, you won't be eligible to receive the dividend, when it is paid on the 13th of December.

The company's next dividend payment will be €0.2274971 per share. Last year, in total, the company distributed €1.12 to shareholders. Based on the last year's worth of payments, Desarrollos Especiales de Sistemas de Anclaje stock has a trailing yield of around 7.5% on the current share price of €15.00. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

See our latest analysis for Desarrollos Especiales de Sistemas de Anclaje

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. Fortunately Desarrollos Especiales de Sistemas de Anclaje's payout ratio is modest, at just 42% of profit.

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

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 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 Desarrollos Especiales de Sistemas de Anclaje's earnings per share have risen 16% 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. Desarrollos Especiales de Sistemas de Anclaje has delivered 15% dividend growth per year on average over the past five years. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

Final Takeaway

Should investors buy Desarrollos Especiales de Sistemas de Anclaje for the upcoming dividend? Desarrollos Especiales de Sistemas de Anclaje has grown its earnings per share while simultaneously reinvesting in the business. Unfortunately it's cut the dividend at least once in the past five years, but the conservative payout ratio makes the current dividend look sustainable. There's a lot to like about Desarrollos Especiales de Sistemas de Anclaje, and we would prioritise taking a closer look at it.

In light of that, while Desarrollos Especiales de Sistemas de Anclaje has an appealing dividend, it's worth knowing the risks involved with this stock. Every company has risks, and we've spotted 3 warning signs for Desarrollos Especiales de Sistemas de Anclaje you should know about.

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.