Caspar Asset Management S.A. (WSE:CSR) Goes Ex-Dividend Soon

It looks like Caspar Asset Management S.A. (WSE:CSR) is about to go 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 because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Thus, you can purchase Caspar Asset Management's shares before the 26th of June in order to receive the dividend, which the company will pay on the 10th of July.

The company's next dividend payment will be zł0.56 per share. Last year, in total, the company distributed zł0.56 to shareholders. Based on the last year's worth of payments, Caspar Asset Management stock has a trailing yield of around 5.1% on the current share price of PLN10.9. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.

See our latest analysis for Caspar Asset Management

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. Caspar Asset Management distributed an unsustainably high 155% of its profit as dividends to shareholders last year. Without more sustainable payment behaviour, the dividend looks precarious.

Generally, the higher a company's payout ratio, the more the dividend is at risk of being reduced.

Click here to see how much of its profit Caspar Asset Management paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're encouraged by the steady growth at Caspar Asset Management, with earnings per share up 8.1% on average 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. Caspar Asset Management has delivered an average of 42% per year annual increase in its dividend, based on the past four years of dividend payments. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

To Sum It Up

From a dividend perspective, should investors buy or avoid Caspar Asset Management? Caspar Asset Management has been growing earnings per share at a reasonable rate, but over the last year its dividend was not well covered by earnings. Caspar Asset Management doesn't appear to have a lot going for it, and we're not inclined to take a risk on owning it for the dividend.

With that being said, if you're still considering Caspar Asset Management as an investment, you'll find it beneficial to know what risks this stock is facing. Our analysis shows 3 warning signs for Caspar Asset Management that we strongly recommend you have a look at before investing in the company.

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.