Income Investors Should Know That Peugeot Invest Société anonyme (EPA:PEUG) Goes Ex-Dividend Soon

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Peugeot Invest Société anonyme (EPA:PEUG) is about to go ex-dividend in just three 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. Therefore, if you purchase Peugeot Invest Société anonyme's shares on or after the 29th of May, you won't be eligible to receive the dividend, when it is paid on the 31st of May.

The company's next dividend payment will be €3.25 per share. Last year, in total, the company distributed €3.25 to shareholders. Last year's total dividend payments show that Peugeot Invest Société anonyme has a trailing yield of 2.9% on the current share price of €111.40. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. We need to see whether the dividend is covered by earnings and if it's growing.

Check out our latest analysis for Peugeot Invest Société anonyme

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. Peugeot Invest Société anonyme paid out 59% of its earnings to investors last year, a normal payout level for most businesses.

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

Click here to see how much of its profit Peugeot Invest Société anonyme 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 fall far enough, the company could be forced to cut its dividend. This is why it's a relief to see Peugeot Invest Société anonyme earnings per share are up 3.5% 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. Peugeot Invest Société anonyme has delivered 9.3% dividend growth per year on average over the past eight years. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

Final Takeaway

From a dividend perspective, should investors buy or avoid Peugeot Invest Société anonyme? Peugeot Invest Société anonyme has been generating some growth in earnings per share while paying out more than half of its earnings to shareholders in the form of dividends. We think there are likely better opportunities out there.

However if you're still interested in Peugeot Invest Société anonyme as a potential investment, you should definitely consider some of the risks involved with Peugeot Invest Société anonyme. To help with this, we've discovered 2 warning signs for Peugeot Invest Société anonyme that you should be aware of before investing in their shares.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.