Why You Might Be Interested In Euroz Hartleys Group Limited (ASX:EZL) For Its Upcoming Dividend
Euroz Hartleys Group Limited (ASX:EZL) stock is about to trade ex-dividend in 4 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase Euroz Hartleys Group's shares on or after the 24th of November, you won't be eligible to receive the dividend, when it is paid on the 2nd of December.
The company's next dividend payment will be AU$0.20 per share, which looks like a nice increase on last year, when the company distributed a total of AU$0.11 to shareholders. 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! As a result, readers should always check whether Euroz Hartleys Group has been able to grow its dividends, or if the dividend might be cut.
See our latest analysis for Euroz Hartleys Group
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Euroz Hartleys Group paid out more than half (51%) of its earnings last year, which is a regular payout ratio for most companies.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Click here to see how much of its profit Euroz Hartleys Group 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 earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. For this reason, we're glad to see Euroz Hartleys Group's earnings per share have risen 12% per annum over the last five years.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Euroz Hartleys Group's dividend payments per share have declined at 4.0% per year on average over the past 10 years, which is uninspiring. Euroz Hartleys Group is a rare case where dividends have been decreasing at the same time as earnings per share have been improving. It's unusual to see, and could point to unstable conditions in the core business, or more rarely an intensified focus on reinvesting profits.
To Sum It Up
Is Euroz Hartleys Group an attractive dividend stock, or better left on the shelf? Earnings per share are growing nicely, and Euroz Hartleys Group is paying out a percentage of its earnings that is around the average for dividend-paying stocks. Euroz Hartleys Group ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.
In light of that, while Euroz Hartleys Group has an appealing dividend, it's worth knowing the risks involved with this stock. For example - Euroz Hartleys Group has 1 warning sign we think you should be aware of.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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