looks like MicroEquities Asset Management Group Limited (ASX:MAM) goes ex-dividend within the next four days. Typically, the ex-dividend date is one business day before the record date, which is the date on which the company determines which shareholders are eligible to receive dividends. The ex-dividend date is important because trades in the stock must be settled before the record date in order to receive the dividend. Therefore, he can purchase Microequities Asset Management Group shares by February 22nd and receive the dividend that the company pays him on March 8th.
The company's next dividend payment will be AU$0.018 per share, and in the last 12 months, the company paid a total of AU$0.03 per share. Based on the last year's worth of payments, MicroEquity Asset Management Group stock has a yield of about 4.8% on the current share price of AU$0.625. Dividends can be a significant contributor to investment returns for long-term holders, but only if they continue to be paid. As a result, readers should always check if MicroEquity Asset Management Group has been able to grow its dividends, or if the dividends could be cut.
Check out our latest analysis for MicroEquity Asset Management Group.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. The dividend payout ratio is 75% of profits, which means that the majority of profits are distributed as dividends. Future earnings growth may be slower due to relatively limited reinvestment of profits. I would be worried if my revenue started to decline.
Generally, the lower a company's payout ratio, the more resilient its dividend is.
Click here to see how much of its profit Microequities Asset Management Group paid out in the last twelve months.
Are profits and dividends growing?
There is value in companies that aren't growing earnings, but if you think a company will struggle to grow, then assessing the sustainability of its dividend is even more important. If profits decline and the company is forced to cut its dividend, investors could see the value of their investments explode. It's not encouraging to see that MicroEquity Asset Management Group's profits have remained essentially flat over the past five years. Sure, it's better than falling off a cliff, but the best dividend stocks grow profits significantly over the long term.
Another important way to measure a company's dividend prospects is by measuring its historical dividend growth rate. MicroEquity Asset Management Group has delivered an average annual dividend increase of 8.4%, based on the past five years of dividend payments.
conclusion
Is MicroEquity Asset Management Group worth buying for its dividend? MicroEquity Asset Management Group has struggled to generate growth while paying out more than half of its profits to shareholders as dividends. It doesn't seem like a great opportunity, but it's worth considering carefully.
So if you want to know more about MicroEquity Asset Management Group, you'll find it worth knowing the risks this stock faces. To solve this, we discovered the following: 2 warning signs for MicroEquity Asset Management Group What you need to know before investing in stocks.
If you're in the market looking for high dividends, we recommend: Check out our selection of high-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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
