Here's What We Like About Marlin Global's (NZSE:MLN) Upcoming Dividend

Marlin Global Limited (NZSE:MLN) stock is about to trade ex-dividend in four days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Marlin Global's shares before the 5th of March to receive the dividend, which will be paid on the 28th of March.

The company's next dividend payment will be NZ$0.0204999 per share. Last year, in total, the company distributed NZ$0.078 to shareholders. Based on the last year's worth of payments, Marlin Global has a trailing yield of 7.9% on the current stock price of NZ$0.99. If you buy this business for its dividend, you should have an idea of whether Marlin Global's dividend is reliable and sustainable. So we need to investigate whether Marlin Global can afford its dividend, and if the dividend could grow.

See our latest analysis for Marlin Global

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

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?

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 earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. For this reason, we're glad to see Marlin Global's earnings per share have risen 19% per annum 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 last 10 years, Marlin Global has lifted its dividend by approximately 0.6% a year on average. Earnings per share have been growing much quicker than dividends, potentially because Marlin Global is keeping back more of its profits to grow the business.

Final Takeaway

Should investors buy Marlin Global for the upcoming dividend? Earnings per share are growing nicely, and Marlin Global is paying out a percentage of its earnings that is around the average for dividend-paying stocks. We think this is a pretty attractive combination, and would be interested in investigating Marlin Global more closely.

So while Marlin Global looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. For example, Marlin Global has 2 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.