Passus S.A. (WSE:PAS) Pays A zł2.92 Dividend In Just Three Days

Passus S.A. (WSE:PAS) is about to trade ex-dividend in the next three 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 an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Meaning, you will need to purchase Passus' shares before the 5th of July to receive the dividend, which will be paid on the 17th of July.

The company's upcoming dividend is zł2.92 a share, following on from the last 12 months, when the company distributed a total of zł2.92 per share to shareholders. Calculating the last year's worth of payments shows that Passus has a trailing yield of 7.8% on the current share price of zł37.40. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether Passus can afford its dividend, and if the dividend could grow.

See our latest analysis for Passus

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. Passus paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run.

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

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Passus reported a loss last year, but at least the general trend suggests its income has been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, five years ago, Passus has lifted its dividend by approximately 126% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

We update our analysis on Passus every 24 hours, so you can always get the latest insights on its financial health, here.

Final Takeaway

Should investors buy Passus for the upcoming dividend? Overall, Passus looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

On that note, you'll want to research what risks Passus is facing. For example, Passus has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.

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