There's A Lot To Like About Christian Berner Tech Trade's (STO:CBTT B) Upcoming kr0.75 Dividend
It looks like Christian Berner Tech Trade AB (publ) (STO: CBTT B) will go ex dividend for the next 3 days. This means that investors who buy stocks on or after April 30th will not receive a dividend, which will be paid on May 6th.
The next dividend payment from Christian Berner Tech Trade is 0.75 kr per share. In total, the company paid out a total of 0.75 kr to the shareholders last year. Based on the value of the payments made last year, Christian Berner Tech Trade's shares show a trailing yield of around 2.0% compared to the current share price of SEK 37.3. We love when companies pay dividends, but it's also important to make sure that laying the golden eggs doesn't kill our golden goose! We have to see if the dividend is covered by earnings and if it is growing.
Check out our latest analysis for Christian Berner Tech Trade
Dividends are usually paid out of company income. So when a company pays out more than it earns, its dividend is usually at greater risk of being cut. Christian Berner Tech Trade paid out a comfortable 45% of its profits last year. A useful secondary test can be to assess whether Christian Berner Tech Trade has generated enough free cash flow to be able to afford its dividend. What's good is that the dividends were well covered by free cash flow and the company paid out 20% of its cash flow last year.
It is positive to see that Christian Berner Tech Trade's dividend is covered by both earnings and cash flow, as this is generally a sign that the dividend is sustainable and a lower payout ratio usually suggests a greater margin of safety before the dividend is cut.
Click here to see how much of his profit Christian Berner Tech Trade has paid out over the past 12 months.
OM: CBTT B historic dividend April 26, 2021Have profits and dividends grown?
Companies with steadily growing earnings per share generally make the best dividend stocks because it is usually easier for them to grow dividends per share. If earnings plummet enough, the company could be forced to cut its dividend. Because of this, it's a relief that Christian Berner Tech Trade's earnings per share have increased 6.7% per year over the past five years. The company keeps more than half of its profits in business and increases profits appropriately. Companies that reinvest heavily in themselves tend to get stronger over time, which can bring attractive perks like higher profits and dividends.
Another important way to measure a company's dividend prospects is by measuring its historical dividend growth rate. Since our data began six years ago, Christian Berner Tech Trade has increased its dividend by an average of 20% per year. It's encouraging to see the company increasing dividends while increasing profits, which suggests at least some interest by companies in rewarding shareholders.
Final takeaway
Does Christian Berner Tech Trade have what it takes to keep dividend payments going? Earnings per share growth has grown somewhat, and Christian Berner Tech Trade pays less than half of its earnings and cash flow as dividends. This is interesting for a number of reasons, as it suggests that management may reinvest heavily in the business, but it also leaves room to raise the dividend in a timely manner. We'd prefer earnings to grow faster, but the long-term best dividend stocks typically combine significant earnings per share growth with a low payout ratio, and Christian Berner Tech Trade is halfway there. It's a promising combination that this company should deserve closer attention.
With this in mind, a critical part of a thorough stock analysis is being aware of the risks that stocks are currently exposed to. For example - Christian Berner Tech Trade has 4 warning signs We think you should be aware of this.
A common investment mistake is buying the first interesting stock you see. Here is a list of promising dividend stocks with a yield greater than 2% and an upcoming dividend.
Funded
When trading with Christian Berner Tech Trade or any other investment, use the platform considered by many to be the professional's gateway to the world market, Interactive Brokers. Get the most affordable * trading in stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
* Interactive brokers have been rated as Lowest Cost Brokers by StockBrokers.com. Annual online review 2020
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