Why You Might Be Interested In Solid Försäkringsaktiebolag (publ) (STO:SFAB) 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 Solid Försäkringsaktiebolag (publ) (STO:SFAB) is about to go ex-dividend in just four 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. In other words, investors can purchase Solid Försäkringsaktiebolag's shares before the 25th of April in order to be eligible for the dividend, which will be paid on the 2nd of May.

The company's next dividend payment will be kr05.00 per share. Last year, in total, the company distributed kr5.00 to shareholders. Last year's total dividend payments show that Solid Försäkringsaktiebolag has a trailing yield of 6.0% on the current share price of kr084.00. If you buy this business for its dividend, you should have an idea of whether Solid Försäkringsaktiebolag's dividend is reliable and sustainable. So we need to investigate whether Solid Försäkringsaktiebolag can afford its dividend, and if the dividend could grow.

We've discovered 1 warning sign about Solid Försäkringsaktiebolag. View them for free.

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. Solid Försäkringsaktiebolag paid out 56% of its earnings to investors last year, a normal payout level for most businesses.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

See our latest analysis for Solid Försäkringsaktiebolag

Click here to see how much of its profit Solid Försäkringsaktiebolag 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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see Solid Försäkringsaktiebolag's earnings have been skyrocketing, up 30% per annum for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past two years, Solid Försäkringsaktiebolag has increased its dividend at approximately 32% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

The Bottom Line

Should investors buy Solid Försäkringsaktiebolag for the upcoming dividend? Earnings per share are growing at an attractive rate, and Solid Försäkringsaktiebolag is paying out a bit over half its profits. Overall, Solid Försäkringsaktiebolag looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

While it's tempting to invest in Solid Försäkringsaktiebolag for the dividends alone, you should always be mindful of the risks involved. For example, we've found 1 warning sign for Solid Försäkringsaktiebolag that we recommend you consider before investing in the business.

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.