Four Days Left To Buy Opal Balance Investments Ltd (TLV:OPAL) Before The Ex-Dividend Date

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 Opal Balance Investments Ltd (TLV:OPAL) is about to go ex-dividend in just 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, Opal Balance Investments investors that purchase the stock on or after the 29th of August will not receive the dividend, which will be paid on the 8th of September.

The company's next dividend payment will be ₪0.0344149 per share. Last year, in total, the company distributed ₪0.13 to shareholders. Based on the last year's worth of payments, Opal Balance Investments stock has a trailing yield of around 7.6% on the current share price of ₪1.652. 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 Opal Balance Investments has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Opal Balance Investments

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. That's why it's good to see Opal Balance Investments paying out a modest 50% of its earnings.

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.

Click here to see how much of its profit Opal Balance Investments paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's not ideal to see Opal Balance Investments's earnings per share have been shrinking at 2.3% a year over the previous five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Opal Balance Investments's dividend payments per share have declined at 1.9% per year on average over the past eight years, which is uninspiring.

Final Takeaway

From a dividend perspective, should investors buy or avoid Opal Balance Investments? Opal Balance Investments's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.

If you're not too concerned about Opal Balance Investments's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. To that end, you should learn about the 3 warning signs we've spotted with Opal Balance Investments (including 1 which is a bit concerning).

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.