SpareBank 1 Østlandet (OB:SPOL) Stock Goes Ex-Dividend In Just Four Days

SpareBank 1 Østlandet (OB:SPOL) is about to trade ex-dividend in the next four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a 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 SpareBank 1 Østlandet's shares before the 22nd of March to receive the dividend, which will be paid on the 3rd of April.

The company's next dividend payment will be kr07.80 per share, and in the last 12 months, the company paid a total of kr7.80 per share. Looking at the last 12 months of distributions, SpareBank 1 Østlandet has a trailing yield of approximately 5.8% on its current stock price of kr0135.00. If you buy this business for its dividend, you should have an idea of whether SpareBank 1 Østlandet's dividend is reliable and sustainable. So we need to investigate whether SpareBank 1 Østlandet can afford its dividend, and if the dividend could grow.

View our latest analysis for SpareBank 1 Østlandet

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. SpareBank 1 Østlandet paid out more than half (60%) of its earnings last year, which is a regular payout ratio for most companies.

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 the company's payout ratio, plus analyst estimates of its future dividends.

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. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're encouraged by the steady growth at SpareBank 1 Østlandet, with earnings per share up 7.7% on average over the last five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past six years, SpareBank 1 Østlandet has increased its dividend at approximately 12% 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

Has SpareBank 1 Østlandet got what it takes to maintain its dividend payments? Earnings per share have been growing at a reasonable rate, and the company is paying out a bit over half its earnings as dividends. At best we would put it on a watch-list to see if business conditions improve, as it doesn't look like a clear opportunity right now.

With that being said, if dividends aren't your biggest concern with SpareBank 1 Østlandet, you should know about the other risks facing this business. Our analysis shows 1 warning sign for SpareBank 1 Østlandet and you should be aware of it before buying any shares.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

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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.