Grupa Kapitalowa IMMOBILE (WSE:GKI) Could Be A Buy For Its Upcoming Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Grupa Kapitalowa IMMOBILE S.A. (WSE:GKI) is about to trade ex-dividend in the next four days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. 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 Grupa Kapitalowa IMMOBILE's shares before the 11th of September in order to be eligible for the dividend, which will be paid on the 26th of November.

The company's next dividend payment will be zł0.13 per share, and in the last 12 months, the company paid a total of zł0.13 per share. Based on the last year's worth of payments, Grupa Kapitalowa IMMOBILE has a trailing yield of 2.6% on the current stock price of zł4.96. 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.

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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. Grupa Kapitalowa IMMOBILE has a low and conservative payout ratio of just 23% of its income after tax.

Check out our latest analysis for Grupa Kapitalowa IMMOBILE

Click here to see how much of its profit Grupa Kapitalowa IMMOBILE 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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's comforting to see Grupa Kapitalowa IMMOBILE's earnings have been skyrocketing, up 34% per annum for the past five years. Grupa Kapitalowa IMMOBILE looks like a real growth company, with earnings per share growing at a cracking pace and the company reinvesting most of its profits in the business.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Grupa Kapitalowa IMMOBILE has delivered 10% dividend growth per year on average over the past 10 years. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

The Bottom Line

Has Grupa Kapitalowa IMMOBILE got what it takes to maintain its dividend payments? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. This strategy can add significant value to shareholders over the long term - as long as it's done without issuing too many new shares. Overall, Grupa Kapitalowa IMMOBILE looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

In light of that, while Grupa Kapitalowa IMMOBILE has an appealing dividend, it's worth knowing the risks involved with this stock. For example - Grupa Kapitalowa IMMOBILE has 2 warning signs we think you should be aware of.

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.