Three Days Left To Buy Secuoya, Grupo de Comunicación, S.A. (BME:SEC) Before The Ex-Dividend Date

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Secuoya, Grupo de Comunicación, S.A. (BME:SEC) is about to go ex-dividend in just three days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible 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. Meaning, you will need to purchase Secuoya Grupo de Comunicación's shares before the 18th of December to receive the dividend, which will be paid on the 22nd of December.

The company's next dividend payment will be €0.0702291 per share, on the back of last year when the company paid a total of €0.37 to shareholders. Last year's total dividend payments show that Secuoya Grupo de Comunicación has a trailing yield of 1.2% on the current share price of €30.80. If you buy this business for its dividend, you should have an idea of whether Secuoya Grupo de Comunicación's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is 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. Last year Secuoya Grupo de Comunicación paid out 93% of its profits as dividends to shareholders, suggesting the dividend is not well covered by earnings.

View our latest analysis for Secuoya Grupo de Comunicación

Click here to see how much of its profit Secuoya Grupo de Comunicación paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see Secuoya Grupo de Comunicación's earnings have been skyrocketing, up 94% per annum for the past five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Secuoya Grupo de Comunicación has delivered 1.5% dividend growth per year on average over the past eight years. It's good to see both earnings and the dividend have improved - although the former has been rising much quicker than the latter, possibly due to the company reinvesting more of its profits in growth.

To Sum It Up

Is Secuoya Grupo de Comunicación an attractive dividend stock, or better left on the shelf? Earnings per share have been rising nicely although, even though its cashflow payout ratio is low, we question why Secuoya Grupo de Comunicación is paying out so much of its profit. In summary, it's hard to get excited about Secuoya Grupo de Comunicación from a dividend perspective.

However if you're still interested in Secuoya Grupo de Comunicación as a potential investment, you should definitely consider some of the risks involved with Secuoya Grupo de Comunicación. For example - Secuoya Grupo de Comunicación has 1 warning sign 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.