Income Investors Should Know That ANY Biztonsági Nyomda Nyrt. (BUSE:ANY) Goes Ex-Dividend Soon

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that ANY Biztonsági Nyomda Nyrt. (BUSE:ANY) is about to go ex-dividend in just 4 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 because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase ANY Biztonsági Nyomda Nyrt's shares before the 6th of July in order to be eligible for the dividend, which will be paid on the 14th of July.

The company's next dividend payment will be Ft156 per share, and in the last 12 months, the company paid a total of Ft156 per share. Looking at the last 12 months of distributions, ANY Biztonsági Nyomda Nyrt has a trailing yield of approximately 9.0% on its current stock price of HUF1740. 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.

View our latest analysis for ANY Biztonsági Nyomda Nyrt

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. ANY Biztonsági Nyomda Nyrt paid out 137% of profit in the past year, which we think is typically not sustainable unless there are mitigating characteristics such as unusually strong cash flow or a large cash balance. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Thankfully its dividend payments took up just 38% of the free cash flow it generated, which is a comfortable payout ratio.

It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and ANY Biztonsági Nyomda Nyrt fortunately did generate enough cash to fund its dividend. Still, if the company repeatedly paid a dividend greater than its profits, we'd be concerned. Very few companies are able to sustainably pay dividends larger than their reported earnings.

Click here to see how much of its profit ANY Biztonsági Nyomda Nyrt paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're encouraged by the steady growth at ANY Biztonsági Nyomda Nyrt, with earnings per share up 7.6% on average over the last five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, ANY Biztonsági Nyomda Nyrt has increased its dividend at approximately 13% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

Final Takeaway

Is ANY Biztonsági Nyomda Nyrt worth buying for its dividend? ANY Biztonsági Nyomda Nyrt has been steadily growing its earnings per share, and it is paying out just 38% of its cash flow but an uncomfortably high 137% of its income. In summary, while it has some positive characteristics, we're not inclined to race out and buy ANY Biztonsági Nyomda Nyrt today.

If you want to look further into ANY Biztonsági Nyomda Nyrt, it's worth knowing the risks this business faces. For example, we've found 3 warning signs for ANY Biztonsági Nyomda Nyrt that we recommend you consider before investing in the business.

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.