It looks like AMS Public Transport Holdings Limited (HKG:77) is about to go ex-dividend in the next 4 days. You will need to purchase shares before the 2nd of September to receive the dividend, which will be paid on the 11th of September.
AMS Public Transport Holdings's upcoming dividend is HK$0.08 a share, following on from the last 12 months, when the company distributed a total of HK$0.08 per share to shareholders. Based on the last year's worth of payments, AMS Public Transport Holdings stock has a trailing yield of around 8.2% on the current share price of HK$0.97. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether AMS Public Transport Holdings has been able to grow its dividends, or if the dividend might be cut.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation.
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. If earnings fall far enough, the company could be forced to cut its dividend. AMS Public Transport Holdings reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. AMS Public Transport Holdings's dividend payments per share have declined at 1.3% per year on average over the past 10 years, which is uninspiring.
Should investors buy AMS Public Transport Holdings for the upcoming dividend? It's hard to get used to AMS Public Transport Holdings paying a dividend despite reporting a loss over the past year. At least the dividend was covered by free cash flow, however. It might be worth researching if the company is reinvesting in growth projects that could grow earnings and dividends in the future, but for now we're not all that optimistic on its dividend prospects.
Curious about whether AMS Public Transport Holdings has been able to consistently generate growth? Here's a chart of its historical revenue and earnings growth.
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.
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