Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Azienda Bresciana Petroli Nocivelli S.p.A. (BIT:ABP) is about to trade ex-dividend in the next four days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. This means that investors who purchase Azienda Bresciana Petroli Nocivelli's shares on or after the 9th of November will not receive the dividend, which will be paid on the 11th of November.
The company's next dividend payment will be €0.07 per share, and in the last 12 months, the company paid a total of €0.07 per share. Based on the last year's worth of payments, Azienda Bresciana Petroli Nocivelli stock has a trailing yield of around 1.2% on the current share price of €5.75. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. We need to see whether the dividend is covered by earnings and if it's growing.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Azienda Bresciana Petroli Nocivelli has a low and conservative payout ratio of just 17% of its income after tax.
View our latest analysis for Azienda Bresciana Petroli Nocivelli
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. This is why it's a relief to see Azienda Bresciana Petroli Nocivelli earnings per share are up 7.5% per annum over the last five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last four years, Azienda Bresciana Petroli Nocivelli has lifted its dividend by approximately 9.3% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
To Sum It Up
Should investors buy Azienda Bresciana Petroli Nocivelli for the upcoming dividend? It has been growing its earnings per share somewhat in recent years, although it reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. In summary, Azienda Bresciana Petroli Nocivelli appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
In light of that, while Azienda Bresciana Petroli Nocivelli has an appealing dividend, it's worth knowing the risks involved with this stock. For example - Azienda Bresciana Petroli Nocivelli has 1 warning sign we think 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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