Income Investors Should Know That Fiskars Oyj Abp (HEL:FSKRS) Goes Ex-Dividend Soon

Fiskars Oyj Abp (HEL:FSKRS) stock is about to trade ex-dividend in 3 days. If you purchase the stock on or after the 12th of March, you won't be eligible to receive this dividend, when it is paid on the 22nd of March.

Fiskars Oyj Abp's next dividend payment will be €0.30 per share, and in the last 12 months, the company paid a total of €0.60 per share. Calculating the last year's worth of payments shows that Fiskars Oyj Abp has a trailing yield of 4.0% on the current share price of €15.12. 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! So we need to investigate whether Fiskars Oyj Abp can afford its dividend, and if the dividend could grow.

See our latest analysis for Fiskars Oyj Abp

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. Fiskars Oyj Abp paid out more than half (72%) of its earnings last year, which is a regular payout ratio for most companies. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It distributed 27% of its free cash flow as dividends, a comfortable payout level for most companies.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

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

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. So we're not too excited that Fiskars Oyj Abp's earnings are down 4.4% a year over the past five years.

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, 10 years ago, Fiskars Oyj Abp has lifted its dividend by approximately 1.4% a year on average.

To Sum It Up

Should investors buy Fiskars Oyj Abp for the upcoming dividend? The payout ratios are within a reasonable range, implying the dividend may be sustainable. Declining earnings are a serious concern, however, and could pose a threat to the dividend in future. In summary, while it has some positive characteristics, we're not inclined to race out and buy Fiskars Oyj Abp today.

With that being said, if dividends aren't your biggest concern with Fiskars Oyj Abp, you should know about the other risks facing this business. For example, we've found 1 warning sign for Fiskars Oyj Abp that we recommend you consider before investing in the business.

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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