Three Days Left To Buy Lagardere SA (EPA:MMB) Before The Ex-Dividend Date

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Lagardere SA (EPA:MMB) is about to trade ex-dividend in the next 3 days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. 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 Lagardere's shares before the 30th of April in order to be eligible for the dividend, which will be paid on the 5th of May.

The company's next dividend payment will be €0.67 per share, and in the last 12 months, the company paid a total of €0.67 per share. Last year's total dividend payments show that Lagardere has a trailing yield of 3.5% on the current share price of €19.22. If you buy this business for its dividend, you should have an idea of whether Lagardere's dividend is reliable and sustainable. As a result, readers should always check whether Lagardere has been able to grow its dividends, or if the dividend might be cut.

Our free stock report includes 4 warning signs investors should be aware of before investing in Lagardere. Read for free now.

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. Lagardere paid out more than half (56%) of its earnings last year, which is a regular payout ratio for most companies. A useful secondary check can be to evaluate whether Lagardere generated enough free cash flow to afford its dividend. Luckily it paid out just 9.2% of its free cash flow last year.

It's positive to see that Lagardere's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

View our latest analysis for Lagardere

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

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's not ideal to see Lagardere's earnings per share have been shrinking at 4.4% a year over the previous five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Lagardere has seen its dividend decline 6.4% per annum on average over the past 10 years, which is not great to see. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it.

Final Takeaway

Is Lagardere an attractive dividend stock, or better left on the shelf? We're not enthused by the declining earnings per share, although at least the company's payout ratio is within a reasonable range, meaning it may not be at imminent risk of a dividend cut. Overall, it's not a bad combination, but we feel that there are likely more attractive dividend prospects out there.

If you want to look further into Lagardere, it's worth knowing the risks this business faces. Our analysis shows 4 warning signs for Lagardere that we strongly recommend you have a look at before investing in the company.

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.