Technical Publications Service S.p.A. (BIT:TPS) Goes Ex-Dividend Soon

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Technical Publications Service S.p.A. (BIT:TPS) is about to trade ex-dividend in the next 3 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase Technical Publications Service's shares before the 6th of May in order to be eligible for the dividend, which will be paid on the 8th of May.

The company's next dividend payment will be €0.08 per share, and in the last 12 months, the company paid a total of €0.08 per share. Based on the last year's worth of payments, Technical Publications Service has a trailing yield of 1.1% on the current stock price of €7.15. If you buy this business for its dividend, you should have an idea of whether Technical Publications Service's dividend is reliable and sustainable. So we need to investigate whether Technical Publications Service can afford its dividend, and if the dividend could grow.

See our latest analysis for Technical Publications Service

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Technical Publications Service paid out just 17% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. A useful secondary check can be to evaluate whether Technical Publications Service generated enough free cash flow to afford its dividend.

Click here to see how much of its profit Technical Publications Service paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. This is why it's a relief to see Technical Publications Service earnings per share are up 7.8% per annum over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, five years ago, Technical Publications Service has lifted its dividend by approximately 9.9% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

Final Takeaway

Is Technical Publications Service worth buying for its dividend? Technical Publications Service has seen its earnings per share grow steadily and paid out less than half its profit over the last year. Unfortunately, its dividend was not well covered by free cash flow. Overall, it's hard to get excited about Technical Publications Service from a dividend perspective.

So if you want to do more digging on Technical Publications Service, you'll find it worthwhile knowing the risks that this stock faces. For example, we've found 2 warning signs for Technical Publications Service (1 is a bit unpleasant!) that deserve your attention before investing in the shares.

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.

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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.