Three Days Left Until Maharah for Human Resources Company (TADAWUL:1831) Trades Ex-Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Maharah for Human Resources Company (TADAWUL:1831) is about to trade ex-dividend in the next three days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible 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. Accordingly, Maharah for Human Resources investors that purchase the stock on or after the 13th of April will not receive the dividend, which will be paid on the 24th of April.

The company's next dividend payment will be ر.س0.08 per share, and in the last 12 months, the company paid a total of ر.س0.14 per share. Looking at the last 12 months of distributions, Maharah for Human Resources has a trailing yield of approximately 2.6% on its current stock price of ر.س5.51. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether Maharah for Human Resources can afford its dividend, and if the dividend could grow.

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Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Fortunately Maharah for Human Resources's payout ratio is modest, at just 48% of profit.

View our latest analysis for Maharah for Human Resources

Click here to see how much of its profit Maharah for Human Resources paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're discomforted by Maharah for Human Resources's 14% per annum decline in earnings in the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Maharah for Human Resources's dividend payments per share have declined at 20% per year on average over the past five years, which is uninspiring. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it.

Final Takeaway

Is Maharah for Human Resources an attractive dividend stock, or better left on the shelf? 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. Overall, Maharah for Human Resources looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

In light of that, while Maharah for Human Resources has an appealing dividend, it's worth knowing the risks involved with this stock. To that end, you should learn about the 2 warning signs we've spotted with Maharah for Human Resources (including 1 which doesn't sit too well with us) .

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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.