Two Days Left To Buy Atreyu Capital Markets Ltd (TLV:ATRY) Before The Ex-Dividend Date

Readers hoping to buy Atreyu Capital Markets Ltd (TLV:ATRY) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. 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 of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Therefore, if you purchase Atreyu Capital Markets' shares on or after the 6th of April, you won't be eligible to receive the dividend, when it is paid on the 23rd of April.

The company's next dividend payment will be ₪1.35837 per share, on the back of last year when the company paid a total of ₪4.11 to shareholders. Looking at the last 12 months of distributions, Atreyu Capital Markets has a trailing yield of approximately 5.4% on its current stock price of ₪76.07. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. We need to see whether the dividend is covered by earnings and if it's growing.

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If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Atreyu Capital Markets is paying out an acceptable 67% of its profit, a common payout level among most companies.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

View our latest analysis for Atreyu Capital Markets

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 earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're encouraged by the steady growth at Atreyu Capital Markets, with earnings per share up 3.0% on average over the last five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, Atreyu Capital Markets has lifted its dividend by approximately 3.2% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

The Bottom Line

Is Atreyu Capital Markets an attractive dividend stock, or better left on the shelf? Earnings per share have been growing at a reasonable rate, and the company is paying out a bit over half its earnings as dividends. We think there are likely better opportunities out there.

With that being said, if dividends aren't your biggest concern with Atreyu Capital Markets, you should know about the other risks facing this business. For example - Atreyu Capital Markets has 1 warning sign we think you should be aware of.

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.