Three Days Left To Buy Damaan Islamic Insurance Company "Beema" (Q.P.S.C.) (DSM:BEMA) Before The Ex-Dividend Date

It looks like Damaan Islamic Insurance Company "Beema" (Q.P.S.C.) (DSM:BEMA) is about to go 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. 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. Thus, you can purchase Damaan Islamic Insurance Company Beema (Q.P.S.C.)'s shares before the 19th of February in order to receive the dividend, which the company will pay on the 1st of January.

The company's next dividend payment will be ر.ق0.20 per share. Last year, in total, the company distributed ر.ق0.20 to shareholders. Calculating the last year's worth of payments shows that Damaan Islamic Insurance Company Beema (Q.P.S.C.) has a trailing yield of 4.9% on the current share price of ر.ق4.099. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Damaan Islamic Insurance Company Beema (Q.P.S.C.) has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Damaan Islamic Insurance Company Beema (Q.P.S.C.)

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. That's why it's good to see Damaan Islamic Insurance Company Beema (Q.P.S.C.) paying out a modest 36% of its earnings.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see how much of its profit Damaan Islamic Insurance Company Beema (Q.P.S.C.) paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Readers will understand then, why we're concerned to see Damaan Islamic Insurance Company Beema (Q.P.S.C.)'s earnings per share have dropped 27% a year over the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last two years, Damaan Islamic Insurance Company Beema (Q.P.S.C.) has lifted its dividend by approximately 12% a year on average.

To Sum It Up

Has Damaan Islamic Insurance Company Beema (Q.P.S.C.) got what it takes to maintain its dividend payments? Earnings per share have shrunk noticeably in recent years, although we like that the company has a low payout ratio. This could suggest a cut to the dividend may not be a major risk in the near future. We think there are likely better opportunities out there.

Curious about whether Damaan Islamic Insurance Company Beema (Q.P.S.C.) has been able to consistently generate growth? Here's a chart of its historical revenue and earnings growth.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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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.