Marlin Global Limited (NZSE:MLN) Stock Goes Ex-Dividend In Just Four Days

Marlin Global Limited (NZSE:MLN) stock is about to trade ex-dividend in four days. Investors can purchase shares before the 2nd of December in order to be eligible for this dividend, which will be paid on the 18th of December.

Marlin Global's upcoming dividend is NZ$0.022 a share, following on from the last 12 months, when the company distributed a total of NZ$0.08 per share to shareholders. Based on the last year's worth of payments, Marlin Global stock has a trailing yield of around 6.2% on the current share price of NZ$1.3. If you buy this business for its dividend, you should have an idea of whether Marlin Global's dividend is reliable and sustainable. As a result, readers should always check whether Marlin Global has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Marlin Global

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Marlin Global is paying out an acceptable 53% of its profit, a common payout level among most companies.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

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 fall far enough, the company could be forced to cut its dividend. This is why it's a relief to see Marlin Global earnings per share are up 2.3% per annum over the last five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. It looks like the Marlin Global dividends are largely the same as they were 10 years ago.

To Sum It Up

Has Marlin Global 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. It doesn't appear an outstanding opportunity, but could be worth a closer look.

If you're not too concerned about Marlin Global's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. For example - Marlin Global has 1 warning sign we think you should be aware of.

If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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.
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