We Wouldn't Be Too Quick To Buy 63 moons technologies limited (NSE:FINANTECH) Before It Goes Ex-Dividend

By
Simply Wall St
Published
September 03, 2021
NSEI:FINANTECH
Source: Shutterstock

63 moons technologies limited (NSE:FINANTECH) is about to trade ex-dividend in the next 3 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. 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 63 moons technologies' shares on or after the 8th of September will not receive the dividend, which will be paid on the 18th of October.

The company's next dividend payment will be ₹2.00 per share. Last year, in total, the company distributed ₹2.00 to shareholders. Last year's total dividend payments show that 63 moons technologies has a trailing yield of 2.1% on the current share price of ₹96.8. 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! We need to see whether the dividend is covered by earnings and if it's growing.

View our latest analysis for 63 moons technologies

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. 63 moons technologies reported a loss after tax last year, which means it's paying a dividend despite being unprofitable. While this might be a one-off event, this is unlikely to be sustainable in the long term.

Click here to see how much of its profit 63 moons technologies paid out over the last 12 months.

historic-dividend
NSEI:FINANTECH Historic Dividend September 4th 2021

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. 63 moons technologies reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. 63 moons technologies's dividend payments per share have declined at 13% per year on average over the past 10 years, which is uninspiring. While it's not great that earnings and dividends per share have fallen in recent years, we're encouraged by the fact that management has trimmed the dividend rather than risk over-committing the company in a risky attempt to maintain yields to shareholders.

Get our latest analysis on 63 moons technologies's balance sheet health here.

Final Takeaway

Is 63 moons technologies an attractive dividend stock, or better left on the shelf? 63 moons technologies doesn't appear to have a lot going for it, and we're not inclined to take a risk on owning it for the dividend.

Although, if you're still interested in 63 moons technologies and want to know more, you'll find it very useful to know what risks this stock faces. To that end, you should learn about the 3 warning signs we've spotted with 63 moons technologies (including 1 which is significant).

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

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