S.C. Spit Bucovina S.A. (BVB:SPTU) Stock Goes Ex-Dividend In Just One Day

It looks like S.C. Spit Bucovina S.A. (BVB:SPTU) is about to go ex-dividend in the next couple of days. The ex-dividend date generally occurs two days 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 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 S.C. Spit Bucovina's shares on or after the 16th of October will not receive the dividend, which will be paid on the 28th of October.

The company's next dividend payment will be RON00.15 per share, and in the last 12 months, the company paid a total of RON0.28 per share. Calculating the last year's worth of payments shows that S.C. Spit Bucovina has a trailing yield of 9.8% on the current share price of RON02.86. 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! So we need to check whether the dividend payments are covered, and if earnings are growing.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Last year, S.C. Spit Bucovina paid out 342% of its profit to shareholders in the form of dividends. This is not sustainable behaviour and requires a closer look on behalf of the purchaser.

Check out our latest analysis for S.C. Spit Bucovina

Click here to see how much of its profit S.C. Spit Bucovina paid out over the last 12 months.

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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. S.C. Spit Bucovina 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.

Given that S.C. Spit Bucovina has only been paying a dividend for a year, there's not much of a past history to draw insight from.

Get our latest analysis on S.C. Spit Bucovina's balance sheet health here.

To Sum It Up

Is S.C. Spit Bucovina an attractive dividend stock, or better left on the shelf? It might be worth researching if the company is reinvesting in growth projects that could grow earnings and dividends in the future, but for now we're on the fence about its dividend prospects.

If you're not too concerned about S.C. Spit Bucovina's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. In terms of investment risks, we've identified 3 warning signs with S.C. Spit Bucovina 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.