Just Two Days Till Levinstein Properties Ltd (TLV:LVPR) Will Be Trading Ex-Dividend

Levinstein Properties Ltd (TLV:LVPR) stock is about to trade ex-dividend in 2 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. 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. Therefore, if you purchase Levinstein Properties' shares on or after the 22nd of February, you won't be eligible to receive the dividend, when it is paid on the 4th of March.

The company's next dividend payment will be ₪1.00 per share, on the back of last year when the company paid a total of ₪1.75 to shareholders. Based on the last year's worth of payments, Levinstein Properties stock has a trailing yield of around 2.6% on the current share price of ₪67.69. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Levinstein Properties has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Levinstein Properties

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Levinstein Properties has a low and conservative payout ratio of just 13% of its income after tax. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It paid out more than half (53%) of its free cash flow in the past year, which is within an average range for most companies.

It's positive to see that Levinstein Properties's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

Click here to see how much of its profit Levinstein Properties paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. 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 Levinstein Properties's earnings per share have been shrinking at 2.4% a year over the previous five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Levinstein Properties has delivered 3.4% dividend growth per year on average over the past 10 years.

Final Takeaway

Should investors buy Levinstein Properties for the upcoming dividend? Earnings per share have fallen significantly, although at least Levinstein Properties paid out less than half of its profits and free cash flow over the last year, leaving some margin of safety. Overall we're not hugely bearish on the stock, but there are likely better dividend investments out there.

So if you want to do more digging on Levinstein Properties, you'll find it worthwhile knowing the risks that this stock faces. We've identified 3 warning signs with Levinstein Properties (at least 1 which doesn't sit too well with us), and understanding these should be part of your investment process.

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.