Be Sure To Check Out Alaris Equity Partners Income Trust (TSE:AD.UN) Before It Goes Ex-Dividend
Alaris Equity Partners Income Trust (TSE:AD.UN) stock is about to trade ex-dividend in four days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. 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. Thus, you can purchase Alaris Equity Partners Income Trust's shares before the 30th of March in order to receive the dividend, which the company will pay on the 17th of April.
The company's next dividend payment will be CA$0.34 per share, and in the last 12 months, the company paid a total of CA$1.32 per share. Last year's total dividend payments show that Alaris Equity Partners Income Trust has a trailing yield of 8.0% on the current share price of CA$17.05. If you buy this business for its dividend, you should have an idea of whether Alaris Equity Partners Income Trust's dividend is reliable and sustainable. 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 Alaris Equity Partners Income Trust
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. That's why it's good to see Alaris Equity Partners Income Trust paying out a modest 46% of its earnings.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's encouraging to see Alaris Equity Partners Income Trust has grown its earnings rapidly, up 55% a year for the past five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Alaris Equity Partners Income Trust has delivered an average of 1.8% per year annual increase in its dividend, based on the past 10 years of dividend payments. Earnings per share have been growing much quicker than dividends, potentially because Alaris Equity Partners Income Trust is keeping back more of its profits to grow the business.
Is Alaris Equity Partners Income Trust an attractive dividend stock, or better left on the shelf? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. Alaris Equity Partners Income Trust 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.
So while Alaris Equity Partners Income Trust looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Every company has risks, and we've spotted 3 warning signs for Alaris Equity Partners Income Trust (of which 1 doesn't sit too well with us!) you should know about.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
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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.
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