Yahoo Finance Canlan Ice Sports Corp. (TSE:ICE) Will Pay A CA$0.028 Dividend In 3 Days
Canlan Ice Sports Corp. (TSE:ICE) stock is about to trade ex-dividend in 3 days time. You will need to purchase shares before the 27th of December to receive the dividend, which will be paid on the 16th of January.
Canlan Ice Sports's next dividend payment will be CA$0.028 per share, and in the last 12 months, the company paid a total of CA$0.10 per share. Last year's total dividend payments show that Canlan Ice Sports has a trailing yield of 2.3% on the current share price of CA$4.88. 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! So we need to investigate whether Canlan Ice Sports can afford its dividend, and if the dividend could grow.
Check out our latest analysis for Canlan Ice Sports
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. That's why it's good to see Canlan Ice Sports paying out a modest 35% of its earnings. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. Canlan Ice Sports paid a dividend despite reporting negative free cash flow over the last twelve months. This may be due to heavy investment in the business, but this is still suboptimal from a dividend sustainability perspective.
Click here to see how much of its profit Canlan Ice Sports 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. It's encouraging to see Canlan Ice Sports has grown its earnings rapidly, up 29% a year for the past five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last nine years, Canlan Ice Sports has lifted its dividend by approximately 7.0% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.
The Bottom Line
Is Canlan Ice Sports worth buying for its dividend? We like that Canlan Ice Sports has been successfully growing its earnings per share at a nice rate and reinvesting most of its profits in the business. However, we note the high cashflow payout ratio with some concern. To summarise, Canlan Ice Sports looks okay on this analysis, although it doesn't appear a stand-out opportunity.
Keen to explore more data on Canlan Ice Sports's financial performance? Check out our visualisation of its historical revenue and earnings growth.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
