Why You Might Be Interested In Fabrica de Scule Rasnov S.A. (BVB:FACY) For Its Upcoming Dividend

Fabrica de Scule Rasnov S.A. (BVB:FACY) stock is about to trade ex-dividend in three days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. 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. Meaning, you will need to purchase Fabrica de Scule Rasnov's shares before the 18th of August to receive the dividend, which will be paid on the 1st of September.

The company's next dividend payment will be RON00.18 per share. Last year, in total, the company distributed RON0.18 to shareholders. Looking at the last 12 months of distributions, Fabrica de Scule Rasnov has a trailing yield of approximately 1.7% on its current stock price of RON010.40. 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! We need to see whether the dividend is covered by earnings and if it's growing.

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If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fabrica de Scule Rasnov is paying out an acceptable 61% of its profit, a common payout level among most companies.

View our latest analysis for Fabrica de Scule Rasnov

Click here to see how much of its profit Fabrica de Scule Rasnov paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. For this reason, we're glad to see Fabrica de Scule Rasnov's earnings per share have risen 14% per annum over the last five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Fabrica de Scule Rasnov's dividend payments are broadly unchanged compared to where they were 10 years ago.

To Sum It Up

From a dividend perspective, should investors buy or avoid Fabrica de Scule Rasnov? Earnings per share are growing nicely, and Fabrica de Scule Rasnov is paying out a percentage of its earnings that is around the average for dividend-paying stocks. Overall, Fabrica de Scule Rasnov looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. To that end, you should learn about the 3 warning signs we've spotted with Fabrica de Scule Rasnov (including 1 which is a bit concerning).

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.