Should You Buy Y.D. More Investments Ltd (TLV:MRIN) For Its Upcoming Dividend?

Y.D. More Investments Ltd (TLV:MRIN) stock is about to trade ex-dividend in four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. This means that investors who purchase Y.D. More Investments' shares on or after the 2nd of September will not receive the dividend, which will be paid on the 1st of October.

The company's next dividend payment will be ₪0.1402323 per share, on the back of last year when the company paid a total of ₪0.51 to shareholders. Based on the last year's worth of payments, Y.D. More Investments has a trailing yield of 6.2% on the current stock price of ₪8.338. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Y.D. More Investments has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Y.D. More Investments

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. Y.D. More Investments paid out a comfortable 30% of its profit last year.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

Click here to see how much of its profit Y.D. More Investments 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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're encouraged by the steady growth at Y.D. More Investments, with earnings per share up 8.6% on average over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Y.D. More Investments has delivered an average of 1.9% per year annual increase in its dividend, based on the past seven years of dividend payments.

To Sum It Up

Should investors buy Y.D. More Investments for the upcoming dividend? It has been growing its earnings per share somewhat in recent years, although it reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. In summary, Y.D. More Investments appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

So while Y.D. More Investments looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. In terms of investment risks, we've identified 1 warning sign with Y.D. More Investments and understanding them should be part of your investment process.

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.