Just Two Days Till Tigbur - Temporary Professional Personnel Ltd. (TLV:TIGBUR) Will Be Trading Ex-Dividend

Readers hoping to buy Tigbur - Temporary Professional Personnel Ltd. (TLV:TIGBUR) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. This means that investors who purchase shares on or after the 8th of December will not receive the dividend, which will be paid on the 22nd of December.

Tigbur - Temporary Professional Personnel's upcoming dividend is ₪0.32 a share, following on from the last 12 months, when the company distributed a total of ₪0.53 per share to shareholders. Looking at the last 12 months of distributions, Tigbur - Temporary Professional Personnel has a trailing yield of approximately 3.8% on its current stock price of ₪13.72. If you buy this business for its dividend, you should have an idea of whether Tigbur - Temporary Professional Personnel's dividend is reliable and sustainable. So we need to investigate whether Tigbur - Temporary Professional Personnel can afford its dividend, and if the dividend could grow.

See our latest analysis for Tigbur - Temporary Professional Personnel

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. Tigbur - Temporary Professional Personnel is paying out just 21% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events. 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. The good news is it paid out just 3.3% of its free cash flow in the last year.

It's positive to see that Tigbur - Temporary Professional Personnel's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

Click here to see how much of its profit Tigbur - Temporary Professional Personnel 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 fall far enough, the company could be forced to cut its dividend. It's not encouraging to see that Tigbur - Temporary Professional Personnel'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.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, seven years ago, Tigbur - Temporary Professional Personnel has lifted its dividend by approximately 16% a year on average.

The Bottom Line

Has Tigbur - Temporary Professional Personnel got what it takes to maintain its dividend payments? Earnings per share have been flat, although at least the company is paying out a low and conservative percentage of both its earnings and cash flow. It's definitely not great to see earnings falling, but at least there may be some buffer before the dividend gets cut. In summary, while it has some positive characteristics, we're not inclined to race out and buy Tigbur - Temporary Professional Personnel today.

So while Tigbur - Temporary Professional Personnel looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. For example, we've found 5 warning signs for Tigbur - Temporary Professional Personnel (2 can't be ignored!) that deserve your attention before investing in the shares.

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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.
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