Interested In Eurazeo's (EPA:RF) Upcoming €2.65 Dividend? You Have Three Days Left

Readers hoping to buy Eurazeo SE (EPA:RF) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. In other words, investors can purchase Eurazeo's shares before the 26th of May in order to be eligible for the dividend, which will be paid on the 28th of May.

The company's upcoming dividend is €2.65 a share, following on from the last 12 months, when the company distributed a total of €2.65 per share to shareholders. Looking at the last 12 months of distributions, Eurazeo has a trailing yield of approximately 4.0% on its current stock price of €65.65. If you buy this business for its dividend, you should have an idea of whether Eurazeo's dividend is reliable and sustainable. As a result, readers should always check whether Eurazeo has been able to grow its dividends, or if the dividend might be cut.

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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. Eurazeo's dividend is not well covered by earnings, as the company lost money last year. This is not a sustainable state of affairs, so it would be worth investigating if earnings are expected to recover.

View our latest analysis for Eurazeo

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

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. Eurazeo reported a loss last year, but at least the general trend suggests its income has been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Eurazeo has delivered 11% dividend growth per year on average over the past 10 years. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

We update our analysis on Eurazeo every 24 hours, so you can always get the latest insights on its financial health, here.

Final Takeaway

Is Eurazeo worth buying for its dividend? It's hard to get used to Eurazeo paying a dividend despite reporting a loss over the past year. It might be worth researching if the company is reinvesting in growth projects that could grow earnings and dividends in the future, but for now we're on the fence about its dividend prospects.

If you're not too concerned about Eurazeo's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. Every company has risks, and we've spotted 1 warning sign for Eurazeo you should know about.

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.