Atreyu Capital Markets Ltd (TLV:ATRY) Passed Our Checks, And It's About To Pay A ₪1.05 Dividend

It looks like Atreyu Capital Markets Ltd (TLV:ATRY) is about to go ex-dividend in the next three days. Ex-dividend means that investors that purchase the stock on or after the 8th of December will not receive this dividend, which will be paid on the 16th of December.

Atreyu Capital Markets's next dividend payment will be ₪1.05 per share. Last year, in total, the company distributed ₪3.90 to shareholders. Calculating the last year's worth of payments shows that Atreyu Capital Markets has a trailing yield of 7.6% on the current share price of ₪51.64. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

Check out our latest analysis for Atreyu Capital Markets

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. It paid out 85% of its earnings as dividends last year, which is not unreasonable, but limits reinvestment in the business and leaves the dividend vulnerable to a business downturn. It could become a concern if earnings started to decline.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see how much of its profit Atreyu Capital Markets 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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Fortunately for readers, Atreyu Capital Markets's earnings per share have been growing at 12% a year for the past five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Atreyu Capital Markets has delivered 9.0% dividend growth per year on average over the past nine years. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

To Sum It Up

From a dividend perspective, should investors buy or avoid Atreyu Capital Markets? Atreyu Capital Markets has an acceptable payout ratio and its earnings per share have been improving at a decent rate. We think this is a pretty attractive combination, and would be interested in investigating Atreyu Capital Markets more closely.

While it's tempting to invest in Atreyu Capital Markets for the dividends alone, you should always be mindful of the risks involved. In terms of investment risks, we've identified 1 warning sign with Atreyu Capital Markets and understanding them should be part of your investment process.

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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