Four Days Left To Buy Remak-Energomontaz S.A. (WSE:RMK) Before The Ex-Dividend Date

Readers hoping to buy Remak-Energomontaz S.A. (WSE:RMK) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is usually set to be one business day 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, Remak-Energomontaz investors that purchase the stock on or after the 17th of July will not receive the dividend, which will be paid on the 31st of July.

The company's next dividend payment will be zł0.30 per share, on the back of last year when the company paid a total of zł0.30 to shareholders. Looking at the last 12 months of distributions, Remak-Energomontaz has a trailing yield of approximately 1.9% on its current stock price of zł15.60. If you buy this business for its dividend, you should have an idea of whether Remak-Energomontaz'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.

See our latest analysis for Remak-Energomontaz

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. Remak-Energomontaz is paying out just 12% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.

Click here to see how much of its profit Remak-Energomontaz paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Readers will understand then, why we're concerned to see Remak-Energomontaz's earnings per share have dropped 7.2% a year over the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Remak-Energomontaz's dividend payments per share have declined at 23% per year on average over the past two years, which is uninspiring. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it.

Final Takeaway

Has Remak-Energomontaz got what it takes to maintain its dividend payments? Remak-Energomontaz's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. Overall, Remak-Energomontaz looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

In light of that, while Remak-Energomontaz has an appealing dividend, it's worth knowing the risks involved with this stock. For example, Remak-Energomontaz has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com