Interested In KHFM Hospitality and Facility Management Services' (NSE:KHFM) Upcoming ₹0.50 Dividend? You Have Three Days Left

KHFM Hospitality and Facility Management Services Limited (NSE:KHFM) is about to trade ex-dividend in the next 3 days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible 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. Therefore, if you purchase KHFM Hospitality and Facility Management Services' shares on or after the 23rd of September, you won't be eligible to receive the dividend, when it is paid on the 30th of October.

The company's next dividend payment will be ₹0.50 per share. Last year, in total, the company distributed ₹0.50 to shareholders. Based on the last year's worth of payments, KHFM Hospitality and Facility Management Services stock has a trailing yield of around 0.5% on the current share price of ₹101.50. If you buy this business for its dividend, you should have an idea of whether KHFM Hospitality and Facility Management Services's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.

See our latest analysis for KHFM Hospitality and Facility Management Services

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately KHFM Hospitality and Facility Management Services's payout ratio is modest, at just 32% of profit.

Click here to see how much of its profit KHFM Hospitality and Facility Management Services paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. KHFM Hospitality and Facility Management Services's earnings per share have fallen at approximately 16% a year over the previous five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last five years, KHFM Hospitality and Facility Management Services has lifted its dividend by approximately 0.7% a year on average.

To Sum It Up

Is KHFM Hospitality and Facility Management Services worth buying for its dividend? KHFM Hospitality and Facility Management Services'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. Overall, KHFM Hospitality and Facility Management Services looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. For example, KHFM Hospitality and Facility Management Services has 4 warning signs (and 2 which are a bit concerning) we think you should know about.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.