Yahoo Finance Here's What We Like About Pine Cliff Energy's (TSE:PNE) Upcoming Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Pine Cliff Energy Ltd. (TSE:PNE) is about to go ex-dividend in just 2 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Therefore, if you purchase Pine Cliff Energy's shares on or after the 14th of November, you won't be eligible to receive the dividend, when it is paid on the 30th of November.
The company's next dividend payment will be CA$0.01 per share. Last year, in total, the company distributed CA$0.12 to shareholders. Based on the last year's worth of payments, Pine Cliff Energy stock has a trailing yield of around 7.4% on the current share price of CA$1.63. If you buy this business for its dividend, you should have an idea of whether Pine Cliff Energy's dividend is reliable and sustainable. As a result, readers should always check whether Pine Cliff Energy has been able to grow its dividends, or if the dividend might be cut.
See our latest analysis for Pine Cliff Energy
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Pine Cliff Energy has a low and conservative payout ratio of just 1.9% of its income after tax.
Click here to see how much of its profit Pine Cliff Energy paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. 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 Pine Cliff Energy has grown its earnings rapidly, up 51% a year for the past five years. Pine Cliff Energy looks like a real growth company, with earnings per share growing at a cracking pace and the company reinvesting most of its profits in the business.
Unfortunately Pine Cliff Energy has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.
To Sum It Up
Is Pine Cliff Energy worth buying for its dividend? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. In summary, Pine Cliff Energy appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
So while Pine Cliff Energy looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. For example - Pine Cliff Energy has 3 warning signs we think you should be aware of.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
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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