Four Days Left To Buy As Commercial Industrial Company of Computers and Toys S.A. (ATH:ASCO) Before The Ex-Dividend Date

Readers hoping to buy As Commercial Industrial Company of Computers and Toys S.A. (ATH:ASCO) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date occurs one day 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. In other words, investors can purchase As Commercial Industrial Company of Computers and Toys' shares before the 10th of July in order to be eligible for the dividend, which will be paid on the 16th of July.

The company's next dividend payment will be €0.1376255 per share, and in the last 12 months, the company paid a total of €0.14 per share. Last year's total dividend payments show that As Commercial Industrial Company of Computers and Toys has a trailing yield of 4.6% on the current share price of €2.97. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.

View our latest analysis for As Commercial Industrial Company of Computers and Toys

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately As Commercial Industrial Company of Computers and Toys's payout ratio is modest, at just 39% of profit. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow.

Click here to see how much of its profit As Commercial Industrial Company of Computers and Toys paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. This is why it's a relief to see As Commercial Industrial Company of Computers and Toys earnings per share are up 7.3% per annum over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, eight years ago, As Commercial Industrial Company of Computers and Toys has lifted its dividend by approximately 11% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

Final Takeaway

Is As Commercial Industrial Company of Computers and Toys worth buying for its dividend? As Commercial Industrial Company of Computers and Toys has seen its earnings per share grow steadily and paid out less than half its profit over the last year. Unfortunately, its dividend was not well covered by free cash flow. In summary, while it has some positive characteristics, we're not inclined to race out and buy As Commercial Industrial Company of Computers and Toys today.

However if you're still interested in As Commercial Industrial Company of Computers and Toys as a potential investment, you should definitely consider some of the risks involved with As Commercial Industrial Company of Computers and Toys. For instance, we've identified 3 warning signs for As Commercial Industrial Company of Computers and Toys (1 is potentially serious) you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com