There's A Lot To Like About Enad Global 7's (STO:EG7) Upcoming kr00.22 Dividend

It looks like Enad Global 7 AB (publ) (STO:EG7) is about to go ex-dividend in the next four days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Accordingly, Enad Global 7 investors that purchase the stock on or after the 31st of May will not receive the dividend, which will be paid on the 7th of June.

The company's next dividend payment will be kr00.22 per share. Last year, in total, the company distributed kr0.44 to shareholders. Based on the last year's worth of payments, Enad Global 7 stock has a trailing yield of around 3.4% on the current share price of kr012.78. If you buy this business for its dividend, you should have an idea of whether Enad Global 7's dividend is reliable and sustainable. As a result, readers should always check whether Enad Global 7 has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Enad Global 7

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. Fortunately Enad Global 7's payout ratio is modest, at just 48% of profit. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend.

Click here to see how much of its profit Enad Global 7 paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. It's encouraging to see Enad Global 7 has grown its earnings rapidly, up 36% a year for the past five years.

Unfortunately Enad Global 7 has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

Final Takeaway

Is Enad Global 7 an attractive dividend stock, or better left on the shelf? We're glad to see the company has been improving its earnings per share while also paying out a low percentage of income. However, it's not great to see it paying out what we see as an uncomfortably high percentage of its cash flow. To summarise, Enad Global 7 looks okay on this analysis, although it doesn't appear a stand-out opportunity.

On that note, you'll want to research what risks Enad Global 7 is facing. For example, we've found 1 warning sign for Enad Global 7 that we recommend you consider before investing in the business.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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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.