Thessaloniki Water Supply & Sewerage Co S.A. (ATH:EYAPS) Stock Goes Ex-Dividend In Just Three Days

Thessaloniki Water Supply & Sewerage Co S.A. (ATH:EYAPS) stock is about to trade ex-dividend in three days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Thus, you can purchase Thessaloniki Water Supply & Sewerage Co's shares before the 1st of July in order to receive the dividend, which the company will pay on the 8th of July.

The company's next dividend payment will be €0.055 per share. Last year, in total, the company distributed €0.055 to shareholders. Based on the last year's worth of payments, Thessaloniki Water Supply & Sewerage Co stock has a trailing yield of around 1.6% on the current share price of €3.34. If you buy this business for its dividend, you should have an idea of whether Thessaloniki Water Supply & Sewerage Co's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.

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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. That's why it's good to see Thessaloniki Water Supply & Sewerage Co paying out a modest 34% of its earnings.

View our latest analysis for Thessaloniki Water Supply & Sewerage Co

Click here to see how much of its profit Thessaloniki Water Supply & Sewerage Co 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. Readers will understand then, why we're concerned to see Thessaloniki Water Supply & Sewerage Co's earnings per share have dropped 17% a year over the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Thessaloniki Water Supply & Sewerage Co has seen its dividend decline 7.5% per annum on average over the past 10 years, which is not great to see. While it's not great that earnings and dividends per share have fallen in recent years, we're encouraged by the fact that management has trimmed the dividend rather than risk over-committing the company in a risky attempt to maintain yields to shareholders.

The Bottom Line

Should investors buy Thessaloniki Water Supply & Sewerage Co for the upcoming dividend? Earnings per share have shrunk noticeably in recent years, although we like that the company has a low payout ratio. This could suggest a cut to the dividend may not be a major risk in the near future. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.

If you want to look further into Thessaloniki Water Supply & Sewerage Co, it's worth knowing the risks this business faces. Every company has risks, and we've spotted 1 warning sign for Thessaloniki Water Supply & Sewerage Co you should know about.

If you're in the market for strong dividend payers, we recommend checking our selection of top 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.