Read this before you consider Projektengagemang Sweden AB (publ) (STO: MONEY B) for its upcoming dividend of SEK 0.40.
It looks like Projektengagemang Sweden AB (publ) (STO: MONEY B) is about to go ex-dividend within the next 3 days. The ex-dividend date falls on a day before the record date, which is the day when shareholders need to be in the company’s books to receive a dividend. The ex-dividend date is an important date to be aware of because all purchases of the share made on or after this date may involve a late settlement that is not visible on the record date. This means that investors who buy Projektengagemang Sverige’s shares on 6 May or later will not receive the dividend paid on 12 May.
The company’s next dividend will be SEK 0.40 per share, on the back of last year when the company paid out a total of SEK 0.40 to shareholders. A calculation of last year’s payments shows that Projektengagemang Sverige has a trailer return of 2.0% at the current share price of SEK 19.75. Dividends are a large contribution to the return on investment for long-term holders, but only if the dividend continues to be paid out. We need to see if the dividend is covered by the result and if it grows.
See our latest analysis for Project Engagement Sweden
If a company pays more in dividends than it earned, the dividend can become unsustainable – hardly an ideal situation. Project commitment Sweden paid out a comfortable 49% of its profit last year.
Click here to see how much of their profit Project Engagement Sweden has paid out in the last 12 months.
Have profits and dividends increased?
Companies with shrinking results are tricky from a dividend perspective. Investors love dividends, so if profits fall and dividends fall, expect a stock to sell sharply at the same time. With that in mind, we are uncomfortable about Project Engagement Sweden’s 5.7% per year decline in profit over the past five years. As earnings per share fall, so does the maximum amount of dividends that can be paid.
Many investors will assess a company’s dividend performance by evaluating how much the dividend has changed over time. Project involvement Sweden’s dividends per share have decreased by 26% per year on average over the past three years, which is uninspiring. Although it is not good that earnings and dividends per share have fallen in recent years, we are encouraged by the fact that management has trimmed the dividend rather than risking tying the company up in a risky attempt to maintain returns to shareholders.
The points
Has Projektengagemang Sverige received what is required to keep its dividends? Project involvement Sweden’s earnings per share have decreased over the past five years, even though it has a low dividend ratio, which would indicate that a reduction in the dividend is relatively unlikely. In summary, Projektengagemang Sverige seems to have some promise as a dividend share, and we suggest that you take a closer look at it.
Even if it is tempting to invest in Projektengagemang Sverige only for the dividend, you should always be aware of the risks. To help with this, we have discovered 4 warning signs for Project Engagement Sweden which you should be aware of before investing in their shares.
A common investment mistake is to buy the first interesting stock you see. Here you can find a complete list of high-yield dividend stocks.
Do you have feedback on this article? Worried about the content? Get in touch with us directly. Alternatively, you can send an email to the editors (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst forecasts only using an impartial method and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any shares and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by basic data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the shares mentioned.