- Sweden
- /
- Real Estate
- /
- OM:GPG
Don't Race Out To Buy Genova Property Group AB (publ) (STO:GPG) Just Because It's Going Ex-Dividend
It looks like Genova Property Group AB (publ) (STO:GPG) is about to go ex-dividend in the next 3 days. 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 of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. This means that investors who purchase Genova Property Group's shares on or after the 6th of August will not receive the dividend, which will be paid on the 12th of August.
The company's next dividend payment will be kr00.22 per share. If you buy this business for its dividend, you should have an idea of whether Genova Property Group's dividend is reliable and sustainable. As a result, readers should always check whether Genova Property Group has been able to grow its dividends, or if the dividend might be cut.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. That's why it's good to see Genova Property Group paying out a modest 49% of its earnings. A useful secondary check can be to evaluate whether Genova Property Group generated enough free cash flow to afford its dividend. Genova Property Group paid out more free cash flow than it generated - 128%, to be precise - last year, which we think is concerningly high. We're curious about why the company paid out more cash than it generated last year, since this can be one of the early signs that a dividend may be unsustainable.
Genova Property Group paid out less in dividends than it reported in profits, but unfortunately it didn't generate enough cash to cover the dividend. Cash is king, as they say, and were Genova Property Group to repeatedly pay dividends that aren't well covered by cashflow, we would consider this a warning sign.
See our latest analysis for Genova Property Group
Click here to see how much of its profit Genova Property Group 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 fall far enough, the company could be forced to cut its dividend. Genova Property Group's earnings have collapsed faster than Wile E Coyote's schemes to trap the Road Runner; down a tremendous 31% a year over the past five years.
This is Genova Property Group's first year of paying a regular dividend, which is exciting for shareholders - but it does mean there's no dividend history to examine.
Final Takeaway
Has Genova Property Group got what it takes to maintain its dividend payments? It's disappointing to see earnings per share declining, and this would ordinarily be enough to discourage us from most dividend stocks, even though Genova Property Group is paying out less than half its income as dividends. However, it's also paying out an uncomfortably high percentage of its cash flow, which makes us wonder just how sustainable the dividend really is. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being.
Having said that, if you're looking at this stock without much concern for the dividend, you should still be familiar of the risks involved with Genova Property Group. We've identified 3 warning signs with Genova Property Group (at least 2 which shouldn't be ignored), and understanding them should be part of your investment process.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About OM:GPG
Genova Property Group
Engages in property management activities in Sweden.
Second-rate dividend payer low.
Similar Companies
Market Insights
Community Narratives

