Previsión Sanitaria Nacional Gestión SOCIMI, S.A. (BME:YPSN) Passed Our Checks, And It's About To Pay A €0.1134 Dividend

It looks like Previsión Sanitaria Nacional Gestión SOCIMI, S.A. (BME:YPSN) is about to go ex-dividend in the next three days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. In other words, investors can purchase Previsión Sanitaria Nacional Gestión SOCIMI's shares before the 12th of November in order to be eligible for the dividend, which will be paid on the 14th of November.

The company's next dividend payment will be €0.1134 per share. Last year, in total, the company distributed €0.35 to shareholders. Based on the last year's worth of payments, Previsión Sanitaria Nacional Gestión SOCIMI has a trailing yield of 2.5% on the current stock price of €15.90. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Previsión Sanitaria Nacional Gestión SOCIMI can afford its dividend, and if the dividend could grow.

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Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Its dividend payout ratio is 81% 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. It could become a concern if earnings started to decline.

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

See our latest analysis for Previsión Sanitaria Nacional Gestión SOCIMI

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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. For this reason, we're glad to see Previsión Sanitaria Nacional Gestión SOCIMI's earnings per share have risen 10% 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. Previsión Sanitaria Nacional Gestión SOCIMI has delivered an average of 28% per year annual increase in its dividend, based on the past eight years of dividend payments. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

Final Takeaway

Should investors buy Previsión Sanitaria Nacional Gestión SOCIMI for the upcoming dividend? Earnings per share are growing at an attractive rate, and Previsión Sanitaria Nacional Gestión SOCIMI is paying out a bit over half its profits. 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.

In light of that, while Previsión Sanitaria Nacional Gestión SOCIMI has an appealing dividend, it's worth knowing the risks involved with this stock. For example - Previsión Sanitaria Nacional Gestión SOCIMI has 3 warning signs we think you should be aware of.

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.