Just Four Days Till Galaxy Entertainment Group Limited (HKG:27) Will Be Trading Ex-Dividend

Readers hoping to buy Galaxy Entertainment Group Limited (HKG:27) 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. Meaning, you will need to purchase Galaxy Entertainment Group's shares before the 24th of September to receive the dividend, which will be paid on the 25th of October.

The company's upcoming dividend is HK$0.50 a share, following on from the last 12 months, when the company distributed a total of HK$1.00 per share to shareholders. Looking at the last 12 months of distributions, Galaxy Entertainment Group has a trailing yield of approximately 3.3% on its current stock price of HK$30.25. 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! As a result, readers should always check whether Galaxy Entertainment Group has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Galaxy Entertainment Group

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Galaxy Entertainment Group paid out a comfortable 26% of its profit last year.

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

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're discomforted by Galaxy Entertainment Group's 9.4% per annum decline in earnings in the past five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Galaxy Entertainment Group has delivered 10% dividend growth per year on average over the past nine years.

Final Takeaway

Is Galaxy Entertainment Group worth buying for its dividend? Galaxy Entertainment Group's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. Galaxy Entertainment Group ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.

Ever wonder what the future holds for Galaxy Entertainment Group? See what the 15 analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

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.