In This Article:
Koninklijke Heijmans N.V. (AMS:HEIJM) stock is about to trade ex-dividend in 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 an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Therefore, if you purchase Koninklijke Heijmans' shares on or after the 22nd of April, you won't be eligible to receive the dividend, when it is paid on the 29th of April.
The company's next dividend payment will be €1.64 per share, and in the last 12 months, the company paid a total of €1.64 per share. Calculating the last year's worth of payments shows that Koninklijke Heijmans has a trailing yield of 3.9% on the current share price of €41.82. If you buy this business for its dividend, you should have an idea of whether Koninklijke Heijmans's dividend is reliable and sustainable. As a result, readers should always check whether Koninklijke Heijmans has been able to grow its dividends, or if the dividend might be cut.
Our free stock report includes 2 warning signs investors should be aware of before investing in Koninklijke Heijmans. Read for free now.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. That's why it's good to see Koninklijke Heijmans paying out a modest 50% of its earnings. A useful secondary check can be to evaluate whether Koninklijke Heijmans generated enough free cash flow to afford its dividend. It paid out 4.8% of its free cash flow as dividends last year, which is conservatively low.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
See our latest analysis for Koninklijke Heijmans
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. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Fortunately for readers, Koninklijke Heijmans's earnings per share have been growing at 18% a year for the past five years. The company has managed to grow earnings at a rapid rate, while reinvesting most of the profits within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later.