Why You Might Be Interested In Cnl Capital E.K.E.S. - AIFM (ATH:CNLCAP) For Its Upcoming Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Cnl Capital E.K.E.S. - AIFM (ATH:CNLCAP) is about to trade ex-dividend in the next three days. 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. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Cnl Capital E.K.E.S. - AIFM's shares before the 2nd of December to receive the dividend, which will be paid on the 6th of December.

The company's next dividend payment will be €0.25 per share, and in the last 12 months, the company paid a total of €0.50 per share. Based on the last year's worth of payments, Cnl Capital E.K.E.S. - AIFM stock has a trailing yield of around 6.9% on the current share price of €7.20. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

See our latest analysis for Cnl Capital E.K.E.S. - AIFM

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. Cnl Capital E.K.E.S. - AIFM paid out 60% of its earnings to investors last year, a normal payout level for most businesses.

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 how much of its profit Cnl Capital E.K.E.S. - AIFM paid out over the last 12 months.

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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see Cnl Capital E.K.E.S. - AIFM's earnings have been skyrocketing, up 69% per annum for the past five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Cnl Capital E.K.E.S. - AIFM has delivered an average of 25% per year annual increase in its dividend, based on the past six years of dividend payments. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

To Sum It Up

Should investors buy Cnl Capital E.K.E.S. - AIFM for the upcoming dividend? Earnings per share are growing nicely, and Cnl Capital E.K.E.S. - AIFM is paying out a percentage of its earnings that is around the average for dividend-paying stocks. We think this is a pretty attractive combination, and would be interested in investigating Cnl Capital E.K.E.S. - AIFM more closely.

So while Cnl Capital E.K.E.S. - AIFM looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Be aware that Cnl Capital E.K.E.S. - AIFM is showing 4 warning signs in our investment analysis, and 2 of those shouldn't be ignored...

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

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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.