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Only Four Days Left To Cash In On Bank7's (NASDAQ:BSVN) Dividend

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  • BSVN

Bank7 Corp. (NASDAQ:BSVN) is about to trade ex-dividend in the next four days. If you purchase the stock on or after the 21st of December, you won't be eligible to receive this dividend, when it is paid on the 7th of January.

Bank7's next dividend payment will be US$0.11 per share, on the back of last year when the company paid a total of US$0.40 to shareholders. Based on the last year's worth of payments, Bank7 stock has a trailing yield of around 3.5% on the current share price of $12.42. 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! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

View our latest analysis for Bank7

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. Bank7 is paying out just 20% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

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?

When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's not ideal to see Bank7's earnings per share have been shrinking at 3.0% a year over the previous five years.

Given that Bank7 has only been paying a dividend for a year, there's not much of a past history to draw insight from.

Final Takeaway

Is Bank7 worth buying for its dividend? Earnings per share have shrunk noticeably in recent years, although we like that the company has a low payout ratio. This could suggest a cut to the dividend may not be a major risk in the near future. We think there are likely better opportunities out there.

So if you want to do more digging on Bank7, you'll find it worthwhile knowing the risks that this stock faces. For instance, we've identified 3 warning signs for Bank7 (1 is a bit concerning) 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@simplywallst.com.