Here's What We Like About Previsión Sanitaria Nacional Gestión SOCIMI's (BME:YPSN) Upcoming Dividend

It looks like Previsión Sanitaria Nacional Gestión SOCIMI, S.A. (BME:YPSN) is about to go 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. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Previsión Sanitaria Nacional Gestión SOCIMI's shares before the 6th of November to receive the dividend, which will be paid on the 8th of November.

The company's next dividend payment will be €0.1134 per share. Last year, in total, the company distributed €0.30 to shareholders. Calculating the last year's worth of payments shows that Previsión Sanitaria Nacional Gestión SOCIMI has a trailing yield of 2.2% on the current share price of €16.10. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Previsión Sanitaria Nacional Gestión SOCIMI has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Previsión Sanitaria Nacional Gestión SOCIMI

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. It paid out 81% 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. It could become a concern if earnings started to decline.

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 Previsión Sanitaria Nacional Gestión SOCIMI 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 fall far enough, the company could be forced to cut its dividend. Fortunately for readers, Previsión Sanitaria Nacional Gestión SOCIMI's earnings per share have been growing at 15% 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. Previsión Sanitaria Nacional Gestión SOCIMI has delivered 30% dividend growth per year on average over the past seven years. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

Final Takeaway

Should investors buy Previsión Sanitaria Nacional Gestión SOCIMI for the upcoming dividend? Previsión Sanitaria Nacional Gestión SOCIMI has an acceptable payout ratio and its earnings per share have been improving at a decent rate. Previsión Sanitaria Nacional Gestión SOCIMI 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.

On that note, you'll want to research what risks Previsión Sanitaria Nacional Gestión SOCIMI is facing. For example, we've found 3 warning signs for Previsión Sanitaria Nacional Gestión SOCIMI that we recommend you consider before investing in the business.

If you're in the market for strong dividend payers, we recommend checking our selection of top 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.