Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság (BUSE:GSPARK) Goes Ex-Dividend Soon

Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság (BUSE:GSPARK) stock is about to trade ex-dividend in four 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. 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. Therefore, if you purchase Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság's shares on or after the 5th of May, you won't be eligible to receive the dividend, when it is paid on the 21st of May.

The company's upcoming dividend is €0.70 a share, following on from the last 12 months, when the company distributed a total of €0.71 per share to shareholders. Looking at the last 12 months of distributions, Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság has a trailing yield of approximately 5.7% on its current stock price of €12.50. 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! So we need to check whether the dividend payments are covered, and if earnings are growing.

We've discovered 2 warning signs about Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság. View them for free.

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Fortunately Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság's payout ratio is modest, at just 42% of profit. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Dividends consumed 50% of the company's free cash flow last year, which is within a normal range for most dividend-paying organisations.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

Check out our latest analysis for Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság

Click here to see how much of its profit Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. It's not encouraging to see that Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság's earnings are effectively flat over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share. Earnings growth has been slim and the company is paying out more than half of its earnings. While there is some room to both increase the payout ratio and reinvest in the business, generally the higher a payout ratio goes, the lower a company's prospects for future growth.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság has delivered 14% dividend growth per year on average over the past 10 years.

The Bottom Line

Is Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság an attractive dividend stock, or better left on the shelf? Earnings per share have been flat over the 10-year timeframe we consider, and Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság paid out less than half its earnings and more than half its free cashflow over the last year. Overall, it's not a bad combination, but we feel that there are likely more attractive dividend prospects out there.

On that note, you'll want to research what risks Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság is facing. For instance, we've identified 2 warning signs for Graphisoft Park SE Ingatlanfejleszto Európai Részvénytársaság (1 is concerning) you should be aware of.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.