Stock Analysis

Be Sure To Check Out S.R. Accord Ltd. (TLV:SRAC) Before It Goes Ex-Dividend

TASE:SRAC
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Readers hoping to buy S.R. Accord Ltd. (TLV:SRAC) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. 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 S.R. Accord's shares on or after the 27th of June will not receive the dividend, which will be paid on the 15th of July.

The company's next dividend payment will be ₪0.4574282 per share, on the back of last year when the company paid a total of ₪1.85 to shareholders. Calculating the last year's worth of payments shows that S.R. Accord has a trailing yield of 6.2% on the current share price of ₪29.84. If you buy this business for its dividend, you should have an idea of whether S.R. Accord's dividend is reliable and sustainable. As a result, readers should always check whether S.R. Accord has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for S.R. Accord

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. S.R. Accord has a low and conservative payout ratio of just 1.7% of its income after tax.

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 S.R. Accord paid out over the last 12 months.

historic-dividend
TASE:SRAC Historic Dividend June 22nd 2024

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. Fortunately for readers, S.R. Accord's earnings per share have been growing at 17% a year for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past eight years, S.R. Accord has increased its dividend at approximately 10% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

Final Takeaway

Is S.R. Accord an attractive dividend stock, or better left on the shelf? Companies like S.R. Accord that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. In summary, S.R. Accord appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

While it's tempting to invest in S.R. Accord for the dividends alone, you should always be mindful of the risks involved. For example - S.R. Accord has 2 warning signs we think you should be aware of.

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.

Valuation is complex, but we're helping make it simple.

Find out whether S.R. Accord is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Valuation is complex, but we're helping make it simple.

Find out whether S.R. Accord is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com