Yahoo Finance Why You Might Be Interested In Fiducian Group Limited (ASX:FID) For Its Upcoming Dividend
Readers hoping to buy Fiducian Group Limited (ASX:FID) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Ex-dividend means that investors that purchase the stock on or after the 28th of August will not receive this dividend, which will be paid on the 14th of September.
Fiducian Group's next dividend payment will be AU$0.12 per share, and in the last 12 months, the company paid a total of AU$0.23 per share. Looking at the last 12 months of distributions, Fiducian Group has a trailing yield of approximately 3.8% on its current stock price of A$6.12. If you buy this business for its dividend, you should have an idea of whether Fiducian Group's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
View our latest analysis for Fiducian Group
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. Fiducian Group is paying out an acceptable 69% of its profit, a common payout level among most companies.
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 how much of its profit Fiducian Group 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. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Fortunately for readers, Fiducian Group's earnings per share have been growing at 17% a year for the past five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Fiducian Group has delivered 14% dividend growth per year on average over the past 10 years. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.
The Bottom Line
From a dividend perspective, should investors buy or avoid Fiducian Group? Earnings per share are growing nicely, and Fiducian Group is paying out a percentage of its earnings that is around the average for dividend-paying stocks. Fiducian Group 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 Fiducian Group has an appealing dividend, it's worth knowing the risks involved with this stock. Our analysis shows 1 warning sign for Fiducian Group and you should be aware of this before buying any shares.
We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.
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. 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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