eQ Oyj (HEL:EQV1V) Will Pay A €0.70 Dividend In Four Days

It looks like eQ Oyj (HEL:EQV1V) is about to go ex-dividend in the next 4 days. Ex-dividend means that investors that purchase the stock on or after the 25th of March will not receive this dividend, which will be paid on the 6th of April.

eQ Oyj's next dividend payment will be €0.70 per share. Last year, in total, the company distributed €0.70 to shareholders. Calculating the last year's worth of payments shows that eQ Oyj has a trailing yield of 3.6% on the current share price of €19.65. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

View our latest analysis for eQ Oyj

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. Last year, eQ Oyj paid out 100% of its income as dividends, which is above a level that we're comfortable with, especially if the company needs to reinvest in its business.

When a company pays out a dividend that is not well covered by profits, the dividend is generally seen as more vulnerable to being cut.

Click here to see how much of its profit eQ Oyj paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. 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 eQ Oyj's earnings per share have risen 18% per annum over the last five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last nine years, eQ Oyj has lifted its dividend by approximately 22% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

Final Takeaway

Has eQ Oyj got what it takes to maintain its dividend payments? We're not enthused to see eQ Oyj's dividend was not well covered by earnings over the last year, although it is great to see earnings growing. We think there are likely better opportunities out there.

If you're not too concerned about eQ Oyj's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. To help with this, we've discovered 1 warning sign for eQ Oyj that you should be aware of before investing in their shares.

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising 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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