Be Sure To Check Out Marlin Global Limited (NZSE:MLN) Before It Goes Ex-Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Marlin Global Limited (NZSE:MLN) is about to trade ex-dividend in the next 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Therefore, if you purchase Marlin Global's shares on or after the 5th of June, you won't be eligible to receive the dividend, when it is paid on the 27th of June.

The company's upcoming dividend is NZ$0.0208 a share, following on from the last 12 months, when the company distributed a total of NZ$0.071 per share to shareholders. Looking at the last 12 months of distributions, Marlin Global has a trailing yield of approximately 7.1% on its current stock price of NZ$1.00. If you buy this business for its dividend, you should have an idea of whether Marlin Global's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

Check out our latest analysis for Marlin Global

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. Fortunately Marlin Global's payout ratio is modest, at just 49% of profit.

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

Click here to see how much of its profit Marlin Global paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If earnings fall far enough, the company could be forced to cut its dividend. It's not encouraging to see that Marlin Global's earnings are effectively flat over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Marlin Global's dividend payments are effectively flat on where they were 10 years ago.

Final Takeaway

Should investors buy Marlin Global for the upcoming dividend? Earnings per share have been flat in recent years, although Marlin Global reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. Overall, Marlin Global looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

On that note, you'll want to research what risks Marlin Global is facing. For example, Marlin Global has 3 warning signs (and 1 which is significant) we think you should know about.

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.