Agram banka d.d (ZGSE:KBZ) Could Be A Buy For Its Upcoming Dividend

Readers hoping to buy Agram banka d.d. (ZGSE:KBZ) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled 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 Agram banka d.d's shares before the 17th of June to receive the dividend, which will be paid on the 10th of July.

The company's next dividend payment will be €2.00 per share, and in the last 12 months, the company paid a total of €1.55 per share. Based on the last year's worth of payments, Agram banka d.d has a trailing yield of 4.2% on the current stock price of €36.80. 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 investigate whether Agram banka d.d can afford its dividend, and if the dividend could grow.

View our latest analysis for Agram banka d.d

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Agram banka d.d paid out 51% of its earnings to investors last year, a normal payout level for most businesses.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see how much of its profit Agram banka d.d 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. If earnings fall far enough, the company could be forced to cut its dividend. That's why we're glad to see earnings per share up 19% over the past 12 months.

One year is not very long in the grand scheme of things though, so we wouldn't draw too strong a conclusion based on these results.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past two years, Agram banka d.d has increased its dividend at approximately 6.0% 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.

To Sum It Up

Is Agram banka d.d an attractive dividend stock, or better left on the shelf? Agram banka d.d has an acceptable payout ratio and its earnings per share have been improving at a decent rate. In summary, Agram banka d.d appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

On that note, you'll want to research what risks Agram banka d.d is facing. Our analysis shows 3 warning signs for Agram banka d.d that we strongly recommend you have a look at before investing in the company.

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.