Yahoo Finance Brookfield Asset Management Reinsurance Partners Ltd. (NYSE:BAMR) Passed Our Checks, And It's About To Pay A US$0.14 Dividend
Brookfield Asset Management Reinsurance Partners Ltd. (NYSE:BAMR) stock is about to trade ex-dividend in four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order 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. Meaning, you will need to purchase Brookfield Asset Management Reinsurance Partners' shares before the 29th of November to receive the dividend, which will be paid on the 30th of December.
The company's next dividend payment will be US$0.14 per share, on the back of last year when the company paid a total of US$0.56 to shareholders. Looking at the last 12 months of distributions, Brookfield Asset Management Reinsurance Partners has a trailing yield of approximately 1.2% on its current stock price of $45.65. If you buy this business for its dividend, you should have an idea of whether Brookfield Asset Management Reinsurance Partners's dividend is reliable and sustainable. So we need to investigate whether Brookfield Asset Management Reinsurance Partners can afford its dividend, and if the dividend could grow.
View our latest analysis for Brookfield Asset Management Reinsurance Partners
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. Brookfield Asset Management Reinsurance Partners has a low and conservative payout ratio of just 8.2% of its income after tax.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Have Earnings And Dividends Been Growing?
Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That explains why we're not overly excited about Brookfield Asset Management Reinsurance Partners's flat earnings over the past three years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share.
Brookfield Asset Management Reinsurance Partners also issued more than 5% of its market cap in new stock during the past year, which we feel is likely to hurt its dividend prospects in the long run. It's hard to grow dividends per share when a company keeps creating new shares.
Unfortunately Brookfield Asset Management Reinsurance Partners has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.
Final Takeaway
Is Brookfield Asset Management Reinsurance Partners an attractive dividend stock, or better left on the shelf? Earnings per share have been flat in recent years, although Brookfield Asset Management Reinsurance Partners reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. Overall, Brookfield Asset Management Reinsurance Partners looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.
In light of that, while Brookfield Asset Management Reinsurance Partners has an appealing dividend, it's worth knowing the risks involved with this stock. Be aware that Brookfield Asset Management Reinsurance Partners is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
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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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