Alten S.A. (EPA:ATE) Will Pay A €1.00 Dividend In Three Days

By
Simply Wall St
Published
May 28, 2021
ENXTPA:ATE
Source: Shutterstock

Readers hoping to buy Alten S.A. (EPA:ATE) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is one business day 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 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. This means that investors who purchase Alten's shares on or after the 2nd of June will not receive the dividend, which will be paid on the 4th of June.

The company's next dividend payment will be €1.00 per share, and in the last 12 months, the company paid a total of €1.00 per share. Based on the last year's worth of payments, Alten stock has a trailing yield of around 1.0% on the current share price of €100.5. 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! We need to see whether the dividend is covered by earnings and if it's growing.

See our latest analysis for Alten

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. Alten paid out a comfortable 34% of its profit last year.

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

historic-dividend
ENXTPA:ATE Historic Dividend May 29th 2021

Have Earnings And Dividends Been Growing?

Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're not enthused to see that Alten's earnings per share have remained effectively flat over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Alten's dividend payments are broadly unchanged compared to where they were 10 years ago.

To Sum It Up

Is Alten an attractive dividend stock, or better left on the shelf? Alten's earnings per share are basically flat over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. In summary, Alten appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

On that note, you'll want to research what risks Alten is facing. To help with this, we've discovered 1 warning sign for Alten 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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