Should You Buy S.C. Casa Alba - Independenta S.A. (BVB:CAIN) 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 S.C. Casa Alba - Independenta S.A. (BVB:CAIN) 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. 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. Therefore, if you purchase S.C. Casa Alba - Independenta's shares on or after the 13th of August, you won't be eligible to receive the dividend, when it is paid on the 30th of August.

The company's next dividend payment will be RON00.6818 per share, and in the last 12 months, the company paid a total of RON0.68 per share. Last year's total dividend payments show that S.C. Casa Alba - Independenta has a trailing yield of 1.5% on the current share price of RON045.00. 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 S.C. Casa Alba - Independenta has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for S.C. Casa Alba - Independenta

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. That's why it's good to see S.C. Casa Alba - Independenta paying out a modest 49% of its earnings.

Click here to see how much of its profit S.C. Casa Alba - Independenta 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. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That's why it's comforting to see S.C. Casa Alba - Independenta's earnings have been skyrocketing, up 42% per annum for the past five years.

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

To Sum It Up

Is S.C. Casa Alba - Independenta an attractive dividend stock, or better left on the shelf? When companies are growing rapidly and retaining a majority of the profits within the business, it's usually a sign that reinvesting earnings creates more value than paying dividends to shareholders. This strategy can add significant value to shareholders over the long term - as long as it's done without issuing too many new shares. In summary, S.C. Casa Alba - Independenta appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

In light of that, while S.C. Casa Alba - Independenta has an appealing dividend, it's worth knowing the risks involved with this stock. To help with this, we've discovered 3 warning signs for S.C. Casa Alba - Independenta (2 don't sit too well with us!) that you ought to be aware of before buying the shares.

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.