Schaffner Holding AG (VTX:SAHN) stock is about to trade ex-dividend in 3 days time. You will need to purchase shares before the 16th of January to receive the dividend, which will be paid on the 20th of January.
Schaffner Holding's next dividend payment will be CHF5.00 per share, and in the last 12 months, the company paid a total of CHF5.00 per share. Looking at the last 12 months of distributions, Schaffner Holding has a trailing yield of approximately 2.4% on its current stock price of CHF207. 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! So we need to check whether the dividend payments are covered, and if earnings are growing.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately Schaffner Holding's payout ratio is modest, at just 44% of profit.
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Readers will understand then, why we're concerned to see Schaffner Holding's earnings per share have dropped 11% a year over the past five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Schaffner Holding has delivered an average of 1.2% per year annual increase in its dividend, based on the past nine years of dividend payments.
Is Schaffner Holding an attractive dividend stock, or better left on the shelf? 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. Schaffner Holding ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.
Keen to explore more data on Schaffner Holding's financial performance? Check out our visualisation of its historical revenue and earnings growth.
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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