Income Investors Should Know That Richmond Mutual Bancorporation, Inc. (NASDAQ:RMBI) Goes Ex-Dividend Soon

Richmond Mutual Bancorporation, Inc. (NASDAQ:RMBI) is about to trade ex-dividend in the next three days. This means that investors who purchase shares on or after the 2nd of December will not receive the dividend, which will be paid on the 17th of December.

Richmond Mutual Bancorporation's next dividend payment will be US$0.05 per share, and in the last 12 months, the company paid a total of US$0.20 per share. Looking at the last 12 months of distributions, Richmond Mutual Bancorporation has a trailing yield of approximately 1.5% on its current stock price of $13.25. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.

Check out our latest analysis for Richmond Mutual Bancorporation

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. Richmond Mutual Bancorporation reported a loss last year, so it's not great to see that it has continued paying a dividend.

Click here to see how much of its profit Richmond Mutual Bancorporation paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Richmond Mutual Bancorporation was unprofitable last year, and sadly its loss per share worsened by 2,759% on the previous year.

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

We update our analysis on Richmond Mutual Bancorporation every 24 hours, so you can always get the latest insights on its financial health, here.

To Sum It Up

Has Richmond Mutual Bancorporation got what it takes to maintain its dividend payments? It's definitely not great to see that it paid a dividend despite reporting a loss last year. Worse, the general trend in its earnings looks negative in recent times. These characteristics don't generally lead to outstanding dividend performance, and investors may not be happy with the results of owning this stock for its dividend.

With that in mind though, if the poor dividend characteristics of Richmond Mutual Bancorporation don't faze you, it's worth being mindful of the risks involved with this business. In terms of investment risks, we've identified 1 warning sign with Richmond Mutual Bancorporation and understanding them should be part of your investment process.

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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.
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