Confinvest F.L. S.p.A. (BIT:CFV) Is About To Go Ex-Dividend, And It Pays A 1.5% Yield

Readers hoping to buy Confinvest F.L. S.p.A. (BIT:CFV) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. You will need to purchase shares before the 22nd of March to receive the dividend, which will be paid on the 24th of March.

The upcoming dividend for Confinvest F.L will put a total of €0.10 per share in shareholders' pockets, up from last year's total dividends of €0.06. If you buy this business for its dividend, you should have an idea of whether Confinvest F.L's dividend is reliable and sustainable. As a result, readers should always check whether Confinvest F.L has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Confinvest F.L

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. Confinvest F.L paid out a comfortable 39% of its profit last year.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Click here to see how much of its profit Confinvest F.L paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Confinvest F.L's earnings have collapsed faster than Wile E Coyote's schemes to trap the Road Runner; down a tremendous 52% a year over the past five years.

Confinvest F.L also issued more than 5% of its market cap in new stock during the past year, which we feel is likely to hurt its dividend prospects in the long run. Trying to grow the dividend while issuing large amounts of new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill.

Given that Confinvest F.L has only been paying a dividend for a year, there's not much of a past history to draw insight from.

To Sum It Up

Has Confinvest F.L got what it takes to maintain its dividend payments? Confinvest F.L'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. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.

However if you're still interested in Confinvest F.L as a potential investment, you should definitely consider some of the risks involved with Confinvest F.L. To that end, you should learn about the 3 warning signs we've spotted with Confinvest F.L (including 1 which shouldn't be ignored).

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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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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