United Company RUSAL, International Public Limited Company (HKG:486) the stock is set to trade ex-dividend in 4 days. The ex-dividend date is one business day before the record date, which is the deadline by which shareholders must be present on the books of the company to be eligible for payment of a dividend. The ex-dividend date is an important date to know because any purchase of shares made on or after this date may mean late settlement that does not appear on the record date. This means that investors who buy shares of United Company RUSAL International on or after October 19 will not receive the dividend, which will be paid on November 3.
The company’s next dividend payment will be $0.02 per share, and over the past 12 months the company has paid a total of $0.04 per share. Last year’s total dividend payout shows that United Company RUSAL International has a 9.7% yield on the current share price of HK$3.23. Dividends contribute greatly to investment returns for long-term holders, but only if the dividend continues to be paid. Therefore, readers should always check whether United Company RUSAL International was able to increase its dividend or if the dividend could be reduced.
Check opportunities and risks within the Hong Kong metals and mining industry.
Dividends are usually paid out of company profits. If a company pays out more dividends than it earns in profits, then the dividend could be unsustainable. United Company RUSAL International only pays out 11% of its after-tax profit, which is comfortably low and leaves plenty of room for adverse events. United Company RUSAL International paid a dividend despite negative free cash flow last year. It’s usually a bad combination and – if it was more than once – not sustainable.
Click here to see how much United Company RUSAL International has paid out over the last 12 months.
Have earnings and dividends increased?
Stocks of companies that generate sustainable earnings growth often offer the best dividend prospects because it is easier to increase the dividend when earnings increase. If business goes into a recession and the dividend is cut, the company could see its value drop precipitously. Luckily for readers, United Company RUSAL International’s earnings per share have grown 20% per year for the past five years.
Many investors will gauge a company’s dividend yield by evaluating how much dividend payouts have changed over time. United Company RUSAL International has achieved an average annual increase of 2.8% in its dividend, based on the last seven years of dividend payments. It’s good to see that earnings and the dividend have improved – although the former has grown much faster than the latter, perhaps because the company has reinvested more of its earnings into growth.
Is United Company RUSAL International an attractive dividend stock, or is it better left on the shelf? Companies like United Company RUSAL International, which grow rapidly and pay out only a small fraction of profits, usually reinvest heavily in their business. Perhaps more importantly – it can sometimes indicate that management is focused on the long-term future of the business. United Company RUSAL International ticks a lot of boxes for us from a dividend perspective, and we believe these characteristics should mark the company as deserving of greater attention.
With that in mind, an essential part of thorough stock research is being aware of all the risks that stocks currently face. For example, we found 3 warning signs for United Company RUSAL International (2 aren’t too good with us!) that deserve your consideration before investing in stocks.
A common investment mistake is to buy the first good stock you see. Here you can find a complete list of high yielding dividend stocks.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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