Mordechai Aviv Taasiot Beniyah (1973) Ltd. (TLV:AVIV) Stock Goes Ex-Dividend In Just Two Days

Mordechai Aviv Taasiot Beniyah (1973) Ltd. (TLV:AVIV) is about to trade ex-dividend in the next two days. You will need to purchase shares before the 23rd of August to receive the dividend, which will be paid on the 6th of September.

Mordechai Aviv Taasiot Beniyah (1973)'s next dividend payment will be ₪0.14 per share, and in the last 12 months, the company paid a total of ₪0.22 per share. Last year's total dividend payments show that Mordechai Aviv Taasiot Beniyah (1973) has a trailing yield of 1.4% on the current share price of ₪15.1. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.

See our latest analysis for Mordechai Aviv Taasiot Beniyah (1973)

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately Mordechai Aviv Taasiot Beniyah (1973)'s payout ratio is modest, at just 25% of profit. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. The good news is it paid out just 4.9% of its free cash flow in the last year.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

Click here to see how much of its profit Mordechai Aviv Taasiot Beniyah (1973) paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That explains why we're not overly excited about Mordechai Aviv Taasiot Beniyah (1973)'s flat earnings over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share.

Unfortunately Mordechai Aviv Taasiot Beniyah (1973) has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

Final Takeaway

Is Mordechai Aviv Taasiot Beniyah (1973) an attractive dividend stock, or better left on the shelf? Earnings per share have been flat, although at least the company is paying out a low and conservative percentage of both its earnings and cash flow. It's definitely not great to see earnings falling, but at least there may be some buffer before the dividend gets cut. In summary, it's hard to get excited about Mordechai Aviv Taasiot Beniyah (1973) from a dividend perspective.

In light of that, while Mordechai Aviv Taasiot Beniyah (1973) has an appealing dividend, it's worth knowing the risks involved with this stock. Our analysis shows 5 warning signs for Mordechai Aviv Taasiot Beniyah (1973) that we strongly recommend you have a look at before investing in the company.

If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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.
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