Income Investors Should Know That Remak-Energomontaz S.A. (WSE:RMK) Goes Ex-Dividend Soon

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Remak-Energomontaz S.A. (WSE:RMK) is about to trade ex-dividend in the next four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order 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 Remak-Energomontaz's shares on or after the 24th of June, you won't be eligible to receive the dividend, when it is paid on the 10th of July.

The company's next dividend payment will be zł0.70 per share, on the back of last year when the company paid a total of zł0.70 to shareholders. Last year's total dividend payments show that Remak-Energomontaz has a trailing yield of 4.4% on the current share price of zł16.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Remak-Energomontaz has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Remak-Energomontaz

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 Remak-Energomontaz's payout ratio is modest, at just 29% of profit.

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

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. 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. When earnings per share fall, the maximum amount of dividends that can be paid also falls.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, two years ago, Remak-Energomontaz has lifted its dividend by approximately 18% a year on average.

The Bottom Line

Is Remak-Energomontaz worth buying for its dividend? 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. In summary, Remak-Energomontaz appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

On that note, you'll want to research what risks Remak-Energomontaz is facing. For instance, we've identified 4 warning signs for Remak-Energomontaz (1 is concerning) you should be aware of.

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.

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