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Should You Buy SunCoke Energy, Inc. (NYSE:SXC) For Its Upcoming Dividend In 4 Days?

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Simply Wall St
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It looks like SunCoke Energy, Inc. (NYSE:SXC) is about to go ex-dividend in the next 4 days. You will need to purchase shares before the 18th of November to receive the dividend, which will be paid on the 2nd of December.

SunCoke Energy's next dividend payment will be US$0.06 per share, and in the last 12 months, the company paid a total of US$0.2 per share. Calculating the last year's worth of payments shows that SunCoke Energy has a trailing yield of 4.6% on the current share price of $5.21. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether SunCoke Energy has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for SunCoke Energy

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.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

NYSE:SXC Historical Dividend Yield, November 13th 2019
NYSE:SXC Historical Dividend Yield, November 13th 2019

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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. SunCoke Energy 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.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. SunCoke Energy has delivered 0.5% dividend growth per year on average over the past five years. Earnings per share have been growing much quicker than dividends, potentially because SunCoke Energy is keeping back more of its profits to grow the business.

Get our latest analysis on SunCoke Energy's balance sheet health here.

To Sum It Up

Should investors buy SunCoke Energy for the upcoming dividend? We think this is a pretty attractive combination, and would be interested in investigating SunCoke Energy more closely.

Wondering what the future holds for SunCoke Energy? See what the two analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.