Saccheria F.lli Franceschetti S.p.A. (BIT:SAC) Stock Goes Ex-Dividend In Just Three Days

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Saccheria F.lli Franceschetti S.p.A. (BIT:SAC) is about to go ex-dividend in just three days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the 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. Meaning, you will need to purchase Saccheria F.lli Franceschetti's shares before the 12th of May to receive the dividend, which will be paid on the 14th of May.

The company's next dividend payment will be €0.061 per share, on the back of last year when the company paid a total of €0.042 to shareholders. Based on the last year's worth of payments, Saccheria F.lli Franceschetti stock has a trailing yield of around 3.7% on the current share price of €1.13. If you buy this business for its dividend, you should have an idea of whether Saccheria F.lli Franceschetti's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.

Our free stock report includes 2 warning signs investors should be aware of before investing in Saccheria F.lli Franceschetti. Read for free now.

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately Saccheria F.lli Franceschetti's payout ratio is modest, at just 38% of profit.

See our latest analysis for Saccheria F.lli Franceschetti

Click here to see how much of its profit Saccheria F.lli Franceschetti 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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. Saccheria F.lli Franceschetti's earnings per share plummeted 24% over the past year,which is rarely good news for the dividend.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Saccheria F.lli Franceschetti has delivered 1.2% dividend growth per year on average over the past two years.

Final Takeaway

Is Saccheria F.lli Franceschetti an attractive dividend stock, or better left on the shelf? Earnings per share are down meaningfully, 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 needs to be cut. Overall, it's not a bad combination, but we feel that there are likely more attractive dividend prospects out there.

So if you want to do more digging on Saccheria F.lli Franceschetti, you'll find it worthwhile knowing the risks that this stock faces. In terms of investment risks, we've identified 2 warning signs with Saccheria F.lli Franceschetti and understanding them should be part of your investment process.

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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.