Angler Gaming plc (NGM:ANGL) Pays A €0.0133 Dividend In Just Two Days

Angler Gaming plc (NGM:ANGL) stock is about to trade ex-dividend in 2 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. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Accordingly, Angler Gaming investors that purchase the stock on or after the 2nd of June will not receive the dividend, which will be paid on the 6th of June.

The company's next dividend payment will be €0.0133 per share, and in the last 12 months, the company paid a total of €0.013 per share. Based on the last year's worth of payments, Angler Gaming stock has a trailing yield of around 3.9% on the current share price of kr03.71. If you buy this business for its dividend, you should have an idea of whether Angler Gaming's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.

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Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Angler Gaming paid out a comfortable 42% of its profit last year.

View our latest analysis for Angler Gaming

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Readers will understand then, why we're concerned to see Angler Gaming's earnings per share have dropped 17% a year over the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Angler Gaming's dividend payments per share have declined at 16% per year on average over the past seven 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 Angler Gaming worth buying for its dividend? 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. In summary, Angler Gaming appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

So while Angler Gaming looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Case in point: We've spotted 2 warning signs for Angler Gaming you should be aware of.

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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.