U.S. markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.86 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.14 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    108.00
    -0.43 (-0.40%)
     
  • Gold

    1,806.70
    +5.20 (+0.29%)
     
  • Silver

    19.78
    +0.19 (+0.96%)
     
  • EUR/USD

    1.0448
    +0.0022 (+0.21%)
     
  • 10-Yr Bond

    2.8890
    0.0000 (0.00%)
     
  • GBP/USD

    1.2129
    +0.0026 (+0.22%)
     
  • USD/JPY

    135.4160
    +0.2410 (+0.18%)
     
  • BTC-USD

    19,406.18
    +351.06 (+1.84%)
     
  • CMC Crypto 200

    418.76
    -1.38 (-0.33%)
     
  • FTSE 100

    7,255.61
    +86.96 (+1.21%)
     
  • Nikkei 225

    26,153.81
    +218.19 (+0.84%)
     

Adams Natural Resources Fund, Inc. (NYSE:PEO) Stock Goes Ex-Dividend In Just Four Days

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Adams Natural Resources Fund, Inc. (NYSE:PEO) is about to go ex-dividend in just four days. This means that investors who purchase shares on or after the 11th of February will not receive the dividend, which will be paid on the 26th of February.

Adams Natural Resources Fund's next dividend payment will be US$0.10 per share, on the back of last year when the company paid a total of US$0.73 to shareholders. Looking at the last 12 months of distributions, Adams Natural Resources Fund has a trailing yield of approximately 5.8% on its current stock price of $12.63. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Adams Natural Resources Fund has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Adams Natural Resources Fund

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. Adams Natural Resources Fund reported a loss last year, so it's not great to see that it has continued paying a dividend.

Click here to see how much of its profit Adams Natural Resources Fund paid out over the last 12 months.

historic-dividend
historic-dividend

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. Adams Natural Resources Fund reported a loss last year, but at least the general trend suggests its income has been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Adams Natural Resources Fund has seen its dividend decline 5.4% per annum on average over the past 10 years, which is not great to see.

Get our latest analysis on Adams Natural Resources Fund's balance sheet health here.

Final Takeaway

From a dividend perspective, should investors buy or avoid Adams Natural Resources Fund? We're a bit uncomfortable with it paying a dividend while being loss-making. We're unconvinced on the company's merits, and think there might be better opportunities out there.

If you're not too concerned about Adams Natural Resources Fund's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. Case in point: We've spotted 3 warning signs for Adams Natural Resources Fund you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.