MakoLab Spólka Akcyjna (WSE:MLB) Stock Goes Ex-Dividend In Just Three Days

MakoLab Spólka Akcyjna (WSE:MLB) is about to trade ex-dividend in the next 3 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 of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Therefore, if you purchase MakoLab Spólka Akcyjna's shares on or after the 9th of July, you won't be eligible to receive the dividend, when it is paid on the 24th of July.

The company's next dividend payment will be zł0.12 per share, on the back of last year when the company paid a total of zł0.12 to shareholders. Looking at the last 12 months of distributions, MakoLab Spólka Akcyjna has a trailing yield of approximately 2.5% on its current stock price of zł4.74. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether MakoLab Spólka Akcyjna has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for MakoLab Spólka Akcyjna

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately MakoLab Spólka Akcyjna's payout ratio is modest, at just 42% of profit. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It paid out 8.4% of its free cash flow as dividends last year, which is conservatively low.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

Click here to see how much of its profit MakoLab Spólka Akcyjna paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's not ideal to see MakoLab Spólka Akcyjna's earnings per share have been shrinking at 4.3% a year over the previous five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. MakoLab Spólka Akcyjna has delivered an average of 7.2% per year annual increase in its dividend, based on the past 10 years of dividend payments.

The Bottom Line

Is MakoLab Spólka Akcyjna worth buying for its dividend? MakoLab Spólka Akcyjna has comfortably low cash and profit payout ratios, which may mean the dividend is sustainable even in the face of a sharp decline in earnings per share. Still, we consider declining earnings to be a warning sign. In summary, it's hard to get excited about MakoLab Spólka Akcyjna from a dividend perspective.

So while MakoLab Spólka Akcyjna looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. To that end, you should learn about the 5 warning signs we've spotted with MakoLab Spólka Akcyjna (including 2 which are potentially serious).

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.

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