Be Sure To Check Out Synektik Spólka Akcyjna (WSE:SNT) Before It Goes Ex-Dividend

Synektik Spólka Akcyjna (WSE:SNT) is about to trade ex-dividend in the next 3 days. 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. 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. This means that investors who purchase Synektik Spólka Akcyjna's shares on or after the 27th of January will not receive the dividend, which will be paid on the 31st of January.

The company's next dividend payment will be zł8.25 per share, and in the last 12 months, the company paid a total of zł8.25 per share. Based on the last year's worth of payments, Synektik Spólka Akcyjna has a trailing yield of 3.6% on the current stock price of zł226.50. 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 Synektik Spólka Akcyjna has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Synektik Spólka Akcyjna

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. It paid out 83% of its earnings as dividends last year, which is not unreasonable, but limits reinvestment in the business and leaves the dividend vulnerable to a business downturn. We'd be concerned if earnings began to decline.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

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. That's why it's comforting to see Synektik Spólka Akcyjna's earnings have been skyrocketing, up 56% per annum for the past five years. Earnings per share are growing at a rapid rate, yet the company is paying out more than three-quarters of its earnings.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Synektik Spólka Akcyjna has delivered an average of 87% per year annual increase in its dividend, based on the past five years of dividend payments. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

Final Takeaway

From a dividend perspective, should investors buy or avoid Synektik Spólka Akcyjna? Earnings per share are growing nicely, and Synektik Spólka Akcyjna is paying out a percentage of its earnings that is around the average for dividend-paying stocks. Synektik Spólka Akcyjna ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.

Wondering what the future holds for Synektik Spólka Akcyjna? See what the three analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

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.