Yahoo Finance Wüstenrot & Württembergische AG (ETR:WUW) Passed Our Checks, And It's About To Pay A €0.65 Dividend
Wüstenrot & Württembergische AG (ETR:WUW) is about to trade ex-dividend in the next 4 days. You can purchase shares before the 20th of May in order to receive the dividend, which the company will pay on the 25th of May.
Wüstenrot & Württembergische's next dividend payment will be €0.65 per share, and in the last 12 months, the company paid a total of €0.65 per share. Last year's total dividend payments show that Wüstenrot & Württembergische has a trailing yield of 4.3% on the current share price of €15.12. 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 Wüstenrot & Württembergische has been able to grow its dividends, or if the dividend might be cut.
View our latest analysis for Wüstenrot & Württembergische
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. Wüstenrot & Württembergische is paying out just 25% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
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. With that in mind, we're not enthused to see that Wüstenrot & Württembergische's earnings per share have remained effectively flat over the past five years. Better than seeing them fall off a cliff, for sure, but the best dividend stocks grow their earnings meaningfully over the long run.
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, ten years ago, Wüstenrot & Württembergische has lifted its dividend by approximately 2.7% a year on average.
To Sum It Up
Should investors buy Wüstenrot & Württembergische for the upcoming dividend? Earnings per share have been flat in recent years, although Wüstenrot & Württembergische reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. Wüstenrot & Württembergische 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 Wüstenrot & Württembergische has an appealing dividend, it's worth knowing the risks involved with this stock. To that end, you should learn about the 2 warning signs we've spotted with Wüstenrot & Württembergische (including 1 which shouldn't be ignored).
If you're in the market for dividend stocks, we recommend checking our list of top 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.
