Yahoo Finance Boston Pizza Royalties Income Fund (TSE:BPF.UN) Will Pay A CA$0.19 Dividend In Four Days
Boston Pizza Royalties Income Fund (TSE:BPF.UN) 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. 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. Meaning, you will need to purchase Boston Pizza Royalties Income Fund's shares before the 20th of December to receive the dividend, which will be paid on the 30th of December.
The company's next dividend payment will be CA$0.19 per share. Last year, in total, the company distributed CA$1.20 to shareholders. Looking at the last 12 months of distributions, Boston Pizza Royalties Income Fund has a trailing yield of approximately 7.6% on its current stock price of CA$15.71. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Boston Pizza Royalties Income Fund has been able to grow its dividends, or if the dividend might be cut.
See our latest analysis for Boston Pizza Royalties Income Fund
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. Boston Pizza Royalties Income Fund paid out just 15% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. A useful secondary check can be to evaluate whether Boston Pizza Royalties Income Fund generated enough free cash flow to afford its dividend. Over the last year, it paid out more than three-quarters (79%) of its free cash flow generated, which is fairly high and may be starting to limit reinvestment in the business.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Have Earnings And Dividends Been Growing?
Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. It's not encouraging to see that Boston Pizza Royalties Income Fund's earnings are effectively flat over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Boston Pizza Royalties Income Fund has lifted its dividend by approximately 0.8% a year on average.
To Sum It Up
Should investors buy Boston Pizza Royalties Income Fund for the upcoming dividend? Its earnings per share are effectively flat in recent times. The company paid out less than half its income and more than half its cash flow as dividends to shareholders. Overall, it's not a bad combination, but we feel that there are likely more attractive dividend prospects out there.
So if you want to do more digging on Boston Pizza Royalties Income Fund, you'll find it worthwhile knowing the risks that this stock faces. For instance, we've identified 5 warning signs for Boston Pizza Royalties Income Fund (1 doesn't sit too well with us) you should be aware of.
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.
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