Previsión Sanitaria Nacional Gestión SOCIMI, S.A. (BME:YPSN) Passed Our Checks, And It's About To Pay A €0.1701891 Dividend

Previsión Sanitaria Nacional Gestión SOCIMI, S.A. (BME:YPSN) stock is about to trade ex-dividend in 4 days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible 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. Thus, you can purchase Previsión Sanitaria Nacional Gestión SOCIMI's shares before the 3rd of July in order to receive the dividend, which the company will pay on the 5th of July.

The company's next dividend payment will be €0.1701891 per share. Last year, in total, the company distributed €0.22 to shareholders. Based on the last year's worth of payments, Previsión Sanitaria Nacional Gestión SOCIMI stock has a trailing yield of around 1.9% on the current share price of €16.00. 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

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. Its dividend payout ratio is 84% of profit, which means the company is paying out a majority of its earnings. The relatively limited profit reinvestment could slow the rate of future earnings growth. 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 Previsión Sanitaria Nacional Gestión SOCIMI 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 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 we're optimistic about Previsión Sanitaria Nacional Gestión SOCIMI's earnings, which have ripped higher, up 39% over the past year. While we'd be remiss not to point out that a year is a very short time in dividend investing, it's an encouraging sign so far.

We do note though, one year is too short a time to be drawing strong conclusions about a company's future growth prospects.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, six years ago, Previsión Sanitaria Nacional Gestión SOCIMI has lifted its dividend by approximately 32% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

To Sum It Up

Should investors buy Previsión Sanitaria Nacional Gestión SOCIMI for the upcoming dividend? Earnings per share are growing nicely, and Previsión Sanitaria Nacional Gestión SOCIMI is paying out a percentage of its earnings that is around the average for dividend-paying stocks. Overall, Previsión Sanitaria Nacional Gestión SOCIMI looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

So while Previsión Sanitaria Nacional Gestión SOCIMI looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. To help with this, we've discovered 4 warning signs for Previsión Sanitaria Nacional Gestión SOCIMI (2 are significant!) that you ought to be aware of before buying the 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.

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