Why You Might Be Interested In Qatar Islamic Bank (Q.P.S.C.) (DSM:QIBK) For Its Upcoming Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Qatar Islamic Bank (Q.P.S.C.) (DSM:QIBK) is about to go ex-dividend in just 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. This means that investors who purchase Qatar Islamic Bank (Q.P.S.C.)'s shares on or after the 27th of February will not receive the dividend, which will be paid on the 1st of January.

The company's next dividend payment will be ر.ق0.55 per share, and in the last 12 months, the company paid a total of ر.ق1.10 per share. Looking at the last 12 months of distributions, Qatar Islamic Bank (Q.P.S.C.) has a trailing yield of approximately 5.1% on its current stock price of ر.ق21.44. If you buy this business for its dividend, you should have an idea of whether Qatar Islamic Bank (Q.P.S.C.)'s dividend is reliable and sustainable. So we need to investigate whether Qatar Islamic Bank (Q.P.S.C.) can afford its dividend, and if the dividend could grow.

Check out our latest analysis for Qatar Islamic Bank (Q.P.S.C.)

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Qatar Islamic Bank (Q.P.S.C.) paid out a comfortable 43% of its profit last year.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

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

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. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it's a relief to see Qatar Islamic Bank (Q.P.S.C.) earnings per share are up 9.0% per annum 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. In the last 10 years, Qatar Islamic Bank (Q.P.S.C.) has lifted its dividend by approximately 11% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

Final Takeaway

Is Qatar Islamic Bank (Q.P.S.C.) an attractive dividend stock, or better left on the shelf? Qatar Islamic Bank (Q.P.S.C.) has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. Overall, Qatar Islamic Bank (Q.P.S.C.) 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 Qatar Islamic Bank (Q.P.S.C.) is facing. In terms of investment risks, we've identified 1 warning sign with Qatar Islamic Bank (Q.P.S.C.) and understanding them should be part of your investment process.

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.