Bikurey Hasade (Holdings) Ltd (TLV:BKRY) Passed Our Checks, And It's About To Pay A ₪0.06678 Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Bikurey Hasade (Holdings) Ltd (TLV:BKRY) is about to go ex-dividend in just 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. This means that investors who purchase Bikurey Hasade (Holdings)'s shares on or after the 7th of April will not receive the dividend, which will be paid on the 21st of April.

The company's next dividend payment will be ₪0.06678 per share, and in the last 12 months, the company paid a total of ₪0.067 per share. Last year's total dividend payments show that Bikurey Hasade (Holdings) has a trailing yield of 2.0% on the current share price of ₪3.41. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Bikurey Hasade (Holdings) has been able to grow its dividends, or if the dividend might be cut.

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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. Bikurey Hasade (Holdings) has a low and conservative payout ratio of just 21% of its income after tax.

View our latest analysis for Bikurey Hasade (Holdings)

Click here to see how much of its profit Bikurey Hasade (Holdings) paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. This is why it's a relief to see Bikurey Hasade (Holdings) earnings per share are up 7.9% per annum over the last five years. Earnings per share have been growing at a decent rate, and the company is retaining more than three-quarters of its earnings in the business. This is an attractive combination, because when profits are reinvested effectively, growth can compound, with corresponding benefits for earnings and dividends in the future.

Unfortunately Bikurey Hasade (Holdings) has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

The Bottom Line

From a dividend perspective, should investors buy or avoid Bikurey Hasade (Holdings)? Bikurey Hasade (Holdings) has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. In summary, Bikurey Hasade (Holdings) appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

On that note, you'll want to research what risks Bikurey Hasade (Holdings) is facing. For example, we've found 2 warning signs for Bikurey Hasade (Holdings) (1 is significant!) that deserve your attention before investing in the shares.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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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.