Interested In ByggPartner Gruppen's (STO:BYGGP) Upcoming kr00.50 Dividend? You Have Three Days Left

Readers hoping to buy ByggPartner Gruppen AB (publ) (STO:BYGGP) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled 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. Thus, you can purchase ByggPartner Gruppen's shares before the 13th of May in order to receive the dividend, which the company will pay on the 19th of May.

The company's next dividend payment will be kr00.50 per share, and in the last 12 months, the company paid a total of kr0.50 per share. Calculating the last year's worth of payments shows that ByggPartner Gruppen has a trailing yield of 2.5% on the current share price of kr019.70. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. We need to see whether the dividend is covered by earnings and if it's growing.

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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. ByggPartner Gruppen paid out a comfortable 42% of its profit last year.

View our latest analysis for ByggPartner Gruppen

Click here to see how much of its profit ByggPartner Gruppen 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 earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. ByggPartner Gruppen's earnings per share have fallen at approximately 23% a year over the previous five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. ByggPartner Gruppen has seen its dividend decline 18% per annum on average over the past eight years, which is not great to see. 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.

The Bottom Line

Is ByggPartner Gruppen worth buying for its dividend? ByggPartner Gruppen's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. We think this is a pretty attractive combination, and would be interested in investigating ByggPartner Gruppen more closely.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Every company has risks, and we've spotted 3 warning signs for ByggPartner Gruppen (of which 1 makes us a bit uncomfortable!) you should know about.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.