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

Atreyu Capital Markets Ltd (TLV:ATRY) stock is about to trade ex-dividend in two 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. In other words, investors can purchase Atreyu Capital Markets' shares before the 7th of December in order to be eligible for the dividend, which will be paid on the 17th of December.

The company's next dividend payment will be ₪2.1054748 per share, and in the last 12 months, the company paid a total of ₪4.24 per share. Calculating the last year's worth of payments shows that Atreyu Capital Markets has a trailing yield of 4.7% on the current share price of ₪89.80. If you buy this business for its dividend, you should have an idea of whether Atreyu Capital Markets's dividend is reliable and sustainable. As a result, readers should always check whether Atreyu Capital Markets has been able to grow its dividends, or if the dividend might be cut.

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Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Atreyu Capital Markets is paying out an acceptable 59% 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?

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 decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're encouraged by the steady growth at Atreyu Capital Markets, with earnings per share up 5.8% 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 3.5% 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

Should investors buy Atreyu Capital Markets for the upcoming dividend? 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.

If you want to look further into Atreyu Capital Markets, it's worth knowing the risks this business faces. To help with this, we've discovered 1 warning sign for Atreyu Capital Markets that you should be aware of before investing in their 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.