Stock Analysis

Here's What We Like About Arnoldo Mondadori Editore's (BIT:MN) Upcoming Dividend

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Arnoldo Mondadori Editore S.p.A. (BIT:MN) is about to trade ex-dividend in the next 3 days. The ex-dividend date is usually set to be one business day 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase Arnoldo Mondadori Editore's shares before the 23rd of May to receive the dividend, which will be paid on the 25th of May.

The company's next dividend payment will be €0.085 per share, and in the last 12 months, the company paid a total of €0.085 per share. Last year's total dividend payments show that Arnoldo Mondadori Editore has a trailing yield of 4.5% on the current share price of €1.882. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.

Check out our latest analysis for Arnoldo Mondadori Editore

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. Arnoldo Mondadori Editore paid out 50% of its earnings to investors last year, a normal payout level for most businesses.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

BIT:MN Historic Dividend May 19th 2022

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. For this reason, we're glad to see Arnoldo Mondadori Editore's earnings per share have risen 16% per annum over the last five years. Arnoldo Mondadori Editore has an average payout ratio which suggests a balance between growing earnings and rewarding shareholders. This is a reasonable combination that could hint at some further dividend increases in the future.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Arnoldo Mondadori Editore has delivered 19% dividend growth per year on average over the past two years. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

The Bottom Line

Is Arnoldo Mondadori Editore worth buying for its dividend? Arnoldo Mondadori Editore has an acceptable payout ratio and its earnings per share have been improving at a decent rate. In summary, Arnoldo Mondadori Editore appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

While it's tempting to invest in Arnoldo Mondadori Editore for the dividends alone, you should always be mindful of the risks involved. For example, we've found 3 warning signs for Arnoldo Mondadori Editore that we recommend you consider before investing in the business.

If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.

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Find out whether Arnoldo Mondadori Editore is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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