U.S. markets open in 21 minutes
  • S&P Futures

    3,669.00
    +8.00 (+0.22%)
     
  • Dow Futures

    29,318.00
    +115.00 (+0.39%)
     
  • Nasdaq Futures

    11,315.00
    -18.75 (-0.17%)
     
  • Russell 2000 Futures

    1,676.30
    +7.90 (+0.47%)
     
  • Crude Oil

    79.88
    +1.38 (+1.76%)
     
  • Gold

    1,642.90
    +6.70 (+0.41%)
     
  • Silver

    18.26
    -0.08 (-0.42%)
     
  • EUR/USD

    0.9584
    -0.0014 (-0.14%)
     
  • 10-Yr Bond

    3.8640
    -0.1000 (-2.52%)
     
  • Vix

    32.70
    +0.44 (+1.36%)
     
  • GBP/USD

    1.0644
    -0.0087 (-0.81%)
     
  • USD/JPY

    144.5760
    -0.2150 (-0.15%)
     
  • BTC-USD

    19,074.73
    -1,114.45 (-5.52%)
     
  • CMC Crypto 200

    435.90
    -23.24 (-5.06%)
     
  • FTSE 100

    6,957.58
    -27.01 (-0.39%)
     
  • Nikkei 225

    26,173.98
    -397.89 (-1.50%)
     

Dominion Lending Centres Inc. (TSE:DLCG) Stock Goes Ex-Dividend In Just Three Days

·3 min read

It looks like Dominion Lending Centres Inc. (TSE:DLCG) is about to go ex-dividend in the next three 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 to be eligible for a dividend payment. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Therefore, if you purchase Dominion Lending Centres' shares on or after the 31st of August, you won't be eligible to receive the dividend, when it is paid on the 15th of September.

The company's upcoming dividend is CA$0.03 a share, following on from the last 12 months, when the company distributed a total of CA$0.12 per share to shareholders. Based on the last year's worth of payments, Dominion Lending Centres stock has a trailing yield of around 3.8% on the current share price of CA$3.15. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

Check out our latest analysis for Dominion Lending Centres

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Dominion Lending Centres reported a loss last year, so it's not great to see that it has continued paying a dividend.

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

historic-dividend
historic-dividend

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Dominion Lending Centres was unprofitable last year, but at least the general trend suggests its earnings have 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.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, six years ago, Dominion Lending Centres has lifted its dividend by approximately 16% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

Remember, you can always get a snapshot of Dominion Lending Centres's financial health, by checking our visualisation of its financial health, here.

The Bottom Line

Should investors buy Dominion Lending Centres for the upcoming dividend? It's hard to get used to Dominion Lending Centres paying a dividend despite reporting a loss over the past year. We're unconvinced on the company's merits, and think there might be better opportunities out there.

With that being said, if dividends aren't your biggest concern with Dominion Lending Centres, you should know about the other risks facing this business. Our analysis shows 2 warning signs for Dominion Lending Centres and you should be aware of these before buying any shares.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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 only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here