Tigbur - Temporary Professional Personnel Ltd. (TLV:TIGBUR) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Tigbur - Temporary Professional Personnel Ltd. (TLV:TIGBUR) is about to trade ex-dividend in the next 4 days. 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. Therefore, if you purchase Tigbur - Temporary Professional Personnel's shares on or after the 13th of June, you won't be eligible to receive the dividend, when it is paid on the 23rd of June.

The company's next dividend payment will be ₪0.472018 per share. Last year, in total, the company distributed ₪1.36 to shareholders. Last year's total dividend payments show that Tigbur - Temporary Professional Personnel has a trailing yield of 3.0% on the current share price of ₪46.00. 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 check whether the dividend payments are covered, and if earnings are growing.

Check out our latest analysis for Tigbur - Temporary Professional Personnel

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Tigbur - Temporary Professional Personnel paid out more than half (63%) of its earnings last year, which is a regular payout ratio for most companies. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It distributed 39% of its free cash flow as dividends, a comfortable payout level for most companies.

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 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 it's comforting to see Tigbur - Temporary Professional Personnel's earnings have been skyrocketing, up 21% per annum for the past five years. The current payout ratio suggests a good balance between rewarding shareholders with dividends, and reinvesting in growth. Earnings per share have been growing quickly and in combination with some reinvestment and a middling payout ratio, the stock may have decent dividend prospects going forwards.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Tigbur - Temporary Professional Personnel has delivered 22% dividend growth per year on average over the past 10 years. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

Final Takeaway

Has Tigbur - Temporary Professional Personnel got what it takes to maintain its dividend payments? Tigbur - Temporary Professional Personnel's growing earnings per share and conservative payout ratios make for a decent combination. We also like that it paid out a lower percentage of its cash flow. It's a promising combination that should mark this company worthy of closer attention.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Our analysis shows 3 warning signs for Tigbur - Temporary Professional Personnel and you should be aware of them before buying any shares.

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.