ABG Sundal Collier Holding ASA (OB:ABG) Stock Goes Ex-Dividend In Just Four Days

It looks like ABG Sundal Collier Holding ASA (OB:ABG) is about to go ex-dividend in the next four 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 of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Thus, you can purchase ABG Sundal Collier Holding's shares before the 25th of April in order to receive the dividend, which the company will pay on the 6th of May.

The company's upcoming dividend is kr00.50 a share, following on from the last 12 months, when the company distributed a total of kr0.50 per share to shareholders. Calculating the last year's worth of payments shows that ABG Sundal Collier Holding has a trailing yield of 7.3% on the current share price of kr06.83. If you buy this business for its dividend, you should have an idea of whether ABG Sundal Collier Holding's dividend is reliable and sustainable. So we need to investigate whether ABG Sundal Collier Holding can afford its dividend, and if the dividend could grow.

Our free stock report includes 2 warning signs investors should be aware of before investing in ABG Sundal Collier Holding. Read for free now.

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Its dividend payout ratio is 87% of profit, which means the company is paying out a majority of its earnings. The relatively limited profit reinvestment could slow the rate of future earnings growth. We'd be concerned if earnings began to decline.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Check out our latest analysis for ABG Sundal Collier Holding

Click here to see how much of its profit ABG Sundal Collier Holding paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're encouraged by the steady growth at ABG Sundal Collier Holding, with earnings per share up 3.1% 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. ABG Sundal Collier Holding's dividend payments are broadly unchanged compared to where they were 10 years ago.

To Sum It Up

Should investors buy ABG Sundal Collier Holding for the upcoming dividend? ABG Sundal Collier Holding has been generating some growth in earnings per share while paying out more than half of its earnings to shareholders in the form of dividends. It might be worth researching if the company is reinvesting in growth projects that could grow earnings and dividends in the future, but for now we're on the fence about its dividend prospects.

If you want to look further into ABG Sundal Collier Holding, it's worth knowing the risks this business faces. We've identified 2 warning signs with ABG Sundal Collier Holding (at least 1 which shouldn't be ignored), and understanding these should be part of your investment process.

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