Income Investors Should Know That Livermore Investments Group Limited (LON:LIV) Goes Ex-Dividend Soon

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Livermore Investments Group Limited (LON:LIV) is about to trade ex-dividend in the next 4 days. Ex-dividend means that investors that purchase the stock on or after the 18th of March will not receive this dividend, which will be paid on the 16th of April.

The upcoming dividend for Livermore Investments Group will put a total of US$0.049 per share in shareholders' pockets, up from last year's total dividends of US$0.034. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Livermore Investments Group has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Livermore Investments Group

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.

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

Have Earnings And Dividends Been Growing?

Businesses with shrinking earnings are tricky from a dividend perspective. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. Livermore Investments Group was unprofitable last year and, unfortunately, the general trend suggests its earnings have been in decline over the last five years, making us wonder if the dividend is sustainable at all.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Livermore Investments Group's dividend payments per share have declined at 0.7% per year on average over the past seven years, which is uninspiring.

Get our latest analysis on Livermore Investments Group's balance sheet health here.

Final Takeaway

Has Livermore Investments Group got what it takes to maintain its dividend payments? It's hard to get past the idea of Livermore Investments Group paying a dividend despite reporting a loss over the past year - especially when the general trend in its earnings also looks to be negative. It doesn't appear an outstanding opportunity, but could be worth a closer look.

However if you're still interested in Livermore Investments Group as a potential investment, you should definitely consider some of the risks involved with Livermore Investments Group. For example, Livermore Investments Group has 4 warning signs (and 2 which are concerning) we think you should know about.

If you're in the market for dividend stocks, we recommend checking our list of top 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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