Athens Water Supply and Sewerage: Dividend InformationAthens Water Supply and Sewerage: Dividend Information Ex-Dividend Date: * 4 days from now Dividend Payment Date: * July 29th Dividend Per Share: * €0.10 Trailing Yield: * 1.7% (based on current share price of €5.80) Key Financial Metrics: * Payout ratio (last year): 53% * Cash flow coverage of dividend: Uncomfortably high Earnings and Dividend Trends: * Earnings per share have declined by an average of 16% per year over the past five years. * Dividend has declined by an average of 12% per year over the past 10 years. Assessment: * The company’s dividend yield is not attractive given the declining earnings trend. * The high cash flow coverage of the dividend raises concerns about its sustainability. * Investors may want to reconsider investing in Athens Water Supply and Sewerage for its dividend. Additional Information: * The company has one warning sign to be aware of before investing. * A list of high-yielding dividend stocks is available for further research. * Simply Wall St provides comprehensive analysis of Athens Water Supply and Sewerage, including fair value estimates and financial health assessments. Disclaimer: * This article is for general information purposes only and should not be considered financial advice. * Consult with a financial professional before making any investment decisions.
Athens Water Supply and Sewerage Company SA (ATH:EYDAP) is scheduled to trade ex-dividend in the next 4 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company’s books in order to qualify for a dividend payment. The ex-dividend date is significant because when a stock is bought or sold, the trade takes at least two business days to settle. Accordingly, investors in Athens Water Supply and Sewerage who purchase the stock on or after July 22nd will not receive the dividend, which is paid on July 29th.
The company’s next dividend payment will be €0.10 per share. Last year, the company paid out a total of €0.10 to shareholders. Calculating the last year’s payments shows that Athens Water Supply and Sewerage has a trailing yield of 1.7% on the current share price of €5.80. If you are buying this company for its dividend, you should have some idea of whether Athens Water Supply and Sewerage’s dividend is reliable and sustainable. Therefore, readers should always monitor whether Athens Water Supply and Sewerage has been able to grow its dividend, or if the dividend might be cut.
View our latest analysis for Athens Water Supply and Sewerage
Dividends are typically paid out of company income, so if a company pays out more than it earned, the risk of the dividend being cut is higher. Athens Water Supply and Sewerage paid out more than half (53%) of its profit last year, which is a normal payout ratio for most companies. However, cash flow is still more important than profits when assessing a dividend, so we need to look at whether the company generated enough cash to pay its dividend.
Click here to see how much profit Athens Water Supply and Sewerage has paid out over the last 12 months.
ATSE:EYDAP Historical Dividend July 17, 2024
Have profits and dividends increased?
When earnings fall, dividend companies become much harder to analyze and safely own. If earnings fall and the company is forced to cut its dividend, investors could see the value of their investment go up in smoke. Readers will understand why we are concerned that Athens Water Supply and Sewerage’s earnings per share have fallen by 16% per year over the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend.
The primary way most investors assess a company’s dividend prospects is to look at its historical dividend growth. Athens Water Supply and Sewerage has seen dividend declines of an average of 12% per year over the past 10 years, which isn’t great to see. It’s never fun to see earnings and dividends decline, but at least management cut the dividend instead of risking the health of the company in an attempt to preserve it.
The summing up
Is Athens Water Supply and Sewerage worth buying for its dividend? It’s definitely not great to see earnings per share falling. The company paid out an acceptable percentage of its earnings, but an uncomfortably high percentage of its cash flow over the past year. It’s not the most attractive proposition from a dividend perspective, and we’d probably pass on it for now.
So if you are still interested in Athens Water Supply and Sewerage despite its poor dividend qualities, you should be well informed about some of the risks that this stock carries. To help you with this, we have discovered 1 warning sign for Athens water supply and sewerage what you should be aware of before investing in their stock.
A common investment mistake is buying the first interesting stock you see. Here you can find a complete list of high yielding dividend stocks.
Valuation is complex, but we make it simple.
Find out whether Athens’ water supply and sewerage system may be over or underrated by reviewing our comprehensive analysis, which includes: fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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This article from Simply Wall St is general in nature. We comment solely on historical data and analyst forecasts, using an objective methodology. Our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or financial situation. We aim to provide you with a long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in the shares mentioned.
Valuation is complex, but we make it simple.
Find out whether Athens’ water supply and sewerage system may be over or underrated by reviewing our comprehensive analysis, which includes: fair value estimates, risks and warnings, dividends, insider transactions and financial health.
View the free analysis
Do you have feedback on this article? Are you concerned about the content? Please contact us directly. You can also send an email to [email protected]
