Regular readers know that we at Simply Wall St love dividends. That’s why YD More Investments Co., Ltd. (TLV:MRIN) will go ex-dividend within the next 4 days. Typically, the ex-dividend date is one business day before the record date, which is the day the company determines which shareholders are eligible to receive the dividend. The ex-dividend date is important because it takes two full business days for the settlement process, so if you miss it, it won’t be recorded in the company’s books on the record date. So, you can buy YD More Investments shares before June 13th to receive the dividend the company will pay on June 23rd.
The company’s next dividend will be ₪0.280494 per share, following a total of ₪0.51 paid by the company to shareholders last year. Calculating last year’s payments shows that YD More Investments has a yield of 6.6% on the current share price of ₪7.844. Dividends are an important source of income for many shareholders, but the health of the business is crucial to maintaining them. We therefore need to investigate whether YD More Investments can afford its dividend, and if the dividend could grow.
See our latest analysis for YD More Investments
Dividends are typically paid out of company profits, so if a company pays out more than it earned, there is a higher than usual risk that the dividend will be cut. YD More Investments paid out 55% of its profits to investors last year, which is a normal dividend level for most companies.
Generally speaking, the lower a company’s dividend payout ratio, the more stable its dividend tends to be.
To see how much of its profit YD More Investments paid out over the last 12 months, click here.
Are profits and dividends increasing?
Companies with consistently growing earnings per share usually make the best dividend stocks, as it is easier to grow dividends per share. If earnings fall sharply, a company may be forced to cut the dividend. That’s why it’s reassuring to see that YD More Investments’ earnings per share have grown at 9.1% per year over the past five years.
The main way most investors assess a company’s dividend prospects is by looking at the historical rate of dividend growth, and since our data began seven years ago, YD More Investments has grown its dividend by approximately 1.9% per year on average.
Final conclusion
Is YD More Investments an attractive dividend stock, or is it better left on the shelf? Earnings per share have been growing at a reasonable rate, and the company is paying out just over half of its profits as dividends. It might be worth investigating whether the company is reinvesting in growth projects that could increase earnings and dividends in the future, but we’re not sure about the dividend prospects at the moment.
Having said that, if dividends are not your biggest concern with YD More Investments, you should know about the other risks facing this business. Our analysis shows that: 1 warning sign for YD More Investments You need to know this before you buy shares.
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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.