There's A Lot To Like About Ninety One Group's (LON:N91) Upcoming UK£0.069 Dividend

By
Simply Wall St
Published
November 26, 2021
LSE:N91
Source: Shutterstock

Ninety One Group (LON:N91) is about to trade ex-dividend in the next four days. 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 important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase Ninety One Group's shares before the 2nd of December in order to be eligible for the dividend, which will be paid on the 17th of December.

The company's next dividend payment will be UK£0.069 per share, and in the last 12 months, the company paid a total of UK£0.14 per share. Calculating the last year's worth of payments shows that Ninety One Group has a trailing yield of 5.3% on the current share price of £2.458. 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! So we need to check whether the dividend payments are covered, and if earnings are growing.

See our latest analysis for Ninety One Group

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Ninety One Group is paying out an acceptable 68% of its profit, a common payout level among most companies.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

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

historic-dividend
LSE:N91 Historic Dividend November 27th 2021

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. That's why we're glad to see earnings per share up 19% over the past 12 months.

One year is not very long in the grand scheme of things though, so we wouldn't draw too strong a conclusion based on these results.

Unfortunately Ninety One Group has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

The Bottom Line

Has Ninety One Group got what it takes to maintain its dividend payments? Earnings per share are growing at an attractive rate, and Ninety One Group is paying out a bit over half its profits. Overall, Ninety One Group looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

So while Ninety One Group looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. To help with this, we've discovered 1 warning sign for Ninety One Group that you should be aware of before investing in their shares.

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

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