Groupe LDLC société anonyme (EPA:ALLDL) Goes Ex-Dividend Soon
Readers hoping to buy Groupe LDLC société anonyme (EPA:ALLDL) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Thus, you can purchase Groupe LDLC société anonyme's shares before the 5th of October in order to receive the dividend, which the company will pay on the 7th of October.
The company's next dividend payment will be €0.73 per share, on the back of last year when the company paid a total of €0.73 to shareholders. Based on the last year's worth of payments, Groupe LDLC société anonyme stock has a trailing yield of around 6.0% on the current share price of €12.10. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Fortunately Groupe LDLC société anonyme's payout ratio is modest, at just 44% of profit. Groupe LDLC société anonyme paid a dividend despite reporting negative free cash flow over the last twelve months. This may be due to heavy investment in the business, but this is still suboptimal from a dividend sustainability perspective.
Check out our latest analysis for Groupe LDLC société anonyme
Click here to see how much of its profit Groupe LDLC société anonyme 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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Readers will understand then, why we're concerned to see Groupe LDLC société anonyme's earnings per share have dropped 24% a year over the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Groupe LDLC société anonyme has delivered an average of 3.9% per year annual increase in its dividend, based on the past 10 years of dividend payments.
The Bottom Line
Is Groupe LDLC société anonyme worth buying for its dividend? Groupe LDLC société anonyme's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. Overall, Groupe LDLC société anonyme looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.
In light of that, while Groupe LDLC société anonyme has an appealing dividend, it's worth knowing the risks involved with this stock. To help with this, we've discovered 5 warning signs for Groupe LDLC société anonyme (3 are potentially serious!) that you ought to be aware of before buying the shares.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.