It looks like Galaxy Entertainment Group Limited (HKG:27) is about to go ex-dividend in the next 4 days. Ex-dividend means that investors that purchase the stock on or after the 24th of September will not receive this dividend, which will be paid on the 25th of October.
Galaxy Entertainment Group's next dividend payment will be HK$0.5 per share, on the back of last year when the company paid a total of HK$0.9 to shareholders. Calculating the last year's worth of payments shows that Galaxy Entertainment Group has a trailing yield of 1.8% on the current share price of HK$51.35. If you buy this business for its dividend, you should have an idea of whether Galaxy Entertainment Group's dividend is reliable and sustainable. As a result, readers should always check whether Galaxy Entertainment Group has been able to grow its dividends, or if the dividend might be cut.
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.
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. This is why it's a relief to see Galaxy Entertainment Group earnings per share are up 4.7% per annum over the last five years. Earnings per share growth in recent times has not been a standout. However, companies that see their growth slow can often choose to pay out a greater percentage of earnings to shareholders, which could see the dividend continue to rise.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the past four years, Galaxy Entertainment Group has increased its dividend at approximately 21% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.
Is Galaxy Entertainment Group an attractive dividend stock, or better left on the shelf? It has been growing its earnings per share somewhat in recent years, although it reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. We think this is a pretty attractive combination, and would be interested in investigating Galaxy Entertainment Group more closely.
Wondering what the future holds for Galaxy Entertainment Group? See what the 21 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.
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