Stock Analysis

Anton Oilfield Services Group (HKG:3337) Is About To Go Ex-Dividend, And It Pays A 3.1% Yield

SEHK:3337
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Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Anton Oilfield Services Group (HKG:3337) is about to trade ex-dividend in the next 4 days. Typically, the ex-dividend date is one business day 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 an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Therefore, if you purchase Anton Oilfield Services Group's shares on or after the 28th of May, you won't be eligible to receive the dividend, when it is paid on the 11th of June.

The company's upcoming dividend is CN¥0.013 a share, following on from the last 12 months, when the company distributed a total of CN¥0.013 per share to shareholders. Last year's total dividend payments show that Anton Oilfield Services Group has a trailing yield of 3.1% on the current share price of HK$0.45. 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! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

See our latest analysis for Anton Oilfield Services Group

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. Anton Oilfield Services Group is paying out just 19% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.

Click here to see how much of its profit Anton Oilfield Services Group paid out over the last 12 months.

historic-dividend
SEHK:3337 Historic Dividend May 23rd 2024

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. So we're not too excited that Anton Oilfield Services Group's earnings are down 3.8% a year over 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. Anton Oilfield Services Group's dividend payments per share have declined at 13% per year on average over the past 10 years, which is uninspiring. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it.

To Sum It Up

Is Anton Oilfield Services Group worth buying for its 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. Anton Oilfield Services 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.

While it's tempting to invest in Anton Oilfield Services Group for the dividends alone, you should always be mindful of the risks involved. Case in point: We've spotted 3 warning signs for Anton Oilfield Services Group 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.