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 three days. Typically, the ex-dividend date is one business day 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. In other words, investors can purchase Tigbur - Temporary Professional Personnel's shares before the 12th of December in order to be eligible for the dividend, which will be paid on the 23rd of December.

The company's next dividend payment will be ₪0.4074261 per share, on the back of last year when the company paid a total of ₪1.36 to shareholders. Calculating the last year's worth of payments shows that Tigbur - Temporary Professional Personnel has a trailing yield of 2.6% on the current share price of ₪52.20. 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.

Check out our latest analysis for Tigbur - Temporary Professional Personnel

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. Tigbur - Temporary Professional Personnel paid out a comfortable 42% of its profit last year. A useful secondary check can be to evaluate whether Tigbur - Temporary Professional Personnel generated enough free cash flow to afford its dividend. Fortunately, it paid out only 37% of its free cash flow in the past 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?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. It's encouraging to see Tigbur - Temporary Professional Personnel has grown its earnings rapidly, up 32% a year for the past five years. Tigbur - Temporary Professional Personnel is paying out less than half its earnings and cash flow, while simultaneously growing earnings per share at a rapid clip. Companies with growing earnings and low payout ratios are often the best long-term dividend stocks, as the company can both grow its earnings and increase the percentage of earnings that it pays out, essentially multiplying the dividend.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Tigbur - Temporary Professional Personnel has delivered an average of 22% per year annual increase in its dividend, based on the past 10 years of dividend payments. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

The Bottom Line

Has Tigbur - Temporary Professional Personnel got what it takes to maintain its dividend payments? Tigbur - Temporary Professional Personnel has grown its earnings per share while simultaneously reinvesting in the business. Unfortunately it's cut the dividend at least once in the past 10 years, but the conservative payout ratio makes the current dividend look sustainable. Overall we think this is an attractive combination and worthy of further research.

In light of that, while Tigbur - Temporary Professional Personnel has an appealing dividend, it's worth knowing the risks involved with this stock. To help with this, we've discovered 1 warning sign for Tigbur - Temporary Professional Personnel that you should be aware of before investing in their shares.

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