Some investors rely on dividends to grow their wealth. If you're also a dividend expert, you might want to know: iA Financial Corporation Co., Ltd. (TSE:IAG) goes ex-dividend in three days. The ex-dividend date is typically set one business day before the record date. The record date is the deadline by which you must be listed on the company's books as a shareholder in order to receive dividends. It is important to be aware of the ex-dividend date, as stock trades must be settled on or before the record date. This means investors can purchase iA Financial shares by February 29th to receive the dividend, which will be paid on March 15th.
The company's next dividend payment will be CA$0.82 per share, and in the last 12 months, the company paid a total of CA$3.28 per share. Looking at the past 12 months of distributions, iA Financial has a yield of approximately 3.8% on its current share price of CA$86.05. We love to see companies pay dividends, but it's also important to make sure our golden goose doesn't die by laying golden eggs. That's why we should always check whether the dividend payments are sustainable, and if the company is growing.
Check out our latest analysis for iA Financial.
Dividends are typically paid out of company profits, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Fortunately, iA Financial's payout ratio is modest at just 41% of its profit.
If a company pays out less in dividends than it earned in profit, this generally suggests the dividend is affordable. The lower the percentage of profits that a company pays out, the greater the margin of safety for the dividend if the business goes into a downturn.
Click here to see the company's payout ratio and analyst estimates of its future dividends.
Are profits and dividends growing?
Companies with promising growth potential are usually the ones that pay the most dividends, since it's easier to grow dividends when earnings per share are improving. If profits decline significantly, the company may be forced to cut its dividend. That's why we're relieved to see iA Financial's earnings per share have grown at 6.6% per year over the last five years.
The main way most investors assess a company's dividend prospects is by looking at its historical dividend growth rate. iA Financial has grown its dividend by an average of 13% each year, based on the past 10 years of dividend payments. It's encouraging to see the company raising its dividend amid growing profits, suggesting that the company has at least some interest in rewarding shareholders.
Summary
Is iA Financial an attractive dividend stock, or should it be left on the shelf? iA Financial has grown its earnings per share modestly in recent years, with more than half of its profits reinvested into the business. Overall, this bodes well for the company's future prospects. We think this is a very attractive combination and would like to investigate iA Financial further.
Want to know what other investors think about iA Financial? Visualize past and future estimated earnings and cash flow to see what analysts are predicting.
A common investment mistake is buying the first interesting stock you see.can be found here Complete list of high dividend stocks.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
