Tigbur - Temporary Professional Personnel Ltd. (TLV:TIGBUR) Passed Our Checks, And It's About To Pay A ₪0.53661 Dividend

Tigbur - Temporary Professional Personnel Ltd. (TLV:TIGBUR) is about to trade ex-dividend in the next three days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. 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. Therefore, if you purchase Tigbur - Temporary Professional Personnel's shares on or after the 9th of December, you won't be eligible to receive the dividend, when it is paid on the 22nd of December.

The company's next dividend payment will be ₪0.53661 per share, on the back of last year when the company paid a total of ₪1.72 to shareholders. Last year's total dividend payments show that Tigbur - Temporary Professional Personnel has a trailing yield of 3.1% on the current share price of ₪56.21. 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.

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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. Tigbur - Temporary Professional Personnel has a low and conservative payout ratio of just 9.6% of its income after tax. 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 paid out 92% of its free cash flow in the form of dividends last year, which is outside the comfort zone for most businesses. Companies usually need cash more than they need earnings - expenses don't pay themselves - so it's not great to see it paying out so much of its cash flow.

Tigbur - Temporary Professional Personnel paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough cash to cover the dividend. Were this to happen repeatedly, this would be a risk to Tigbur - Temporary Professional Personnel's ability to maintain its dividend.

Check out our latest analysis for Tigbur - Temporary Professional Personnel

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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. It's encouraging to see Tigbur - Temporary Professional Personnel has grown its earnings rapidly, up 25% a year for the past five years. Earnings have been growing quickly, but we're concerned dividend payments consumed most of the company's cash flow over the past year.

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, 10 years ago, Tigbur - Temporary Professional Personnel has lifted its dividend by approximately 18% a year on average. 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? We like that Tigbur - Temporary Professional Personnel has been successfully growing its earnings per share at a nice rate and reinvesting most of its profits in the business. However, we note the high cashflow payout ratio with some concern. In summary, it's hard to get excited about Tigbur - Temporary Professional Personnel from a dividend perspective.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Case in point: We've spotted 1 warning sign for Tigbur - Temporary Professional Personnel you should be aware of.

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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.