[ad_1]
Top Ten Entertainment Group (Length: TEG) is about to trade ex-dividend within the next 3 days. The ex-dividend date is the business day preceding the record date, which is the date by which shareholders become eligible for dividend payments on the company’s books. The ex-dividend date is important because the settlement process involves two full business days. So if you miss that date, you won’t be on the company’s books on the record date. That means investors who bought Ten Entertainment Group shares on or after May 18 will not receive the dividend due to be paid on June 13.
The company’s next dividend payment will be £0.07 per share, compared to a total of £0.14 paid out to shareholders last year. Looking at offerings over the past 12 months, Ten Entertainment Group’s current share price is £2.70, with a trailing yield of around 5.2%. If you’re buying this company’s dividend, you should know if Ten Entertainment Group’s dividend is reliable and sustainable. So we need to investigate whether Ten Entertainment Group can afford its dividend, and whether the dividend can grow.
Check out our latest analysis for the top 10 entertainment groups
Dividends are usually paid out of company earnings. If a company pays out more dividends than it earns, the dividend may not be sustainable. Ten Entertainment Group paid out 26 percent of its profits last year. However, cash flow is often more important than profit in assessing dividend sustainability, so we should always check whether the company is generating enough cash to pay the dividend. Fortunately, it only paid out 7.7% of its free cash flow last year.
Encouragingly, profit and cash flow both cover the dividend. This usually indicates that the dividend is sustainable as long as earnings don’t drop precipitously.
click Here you can see the company’s payout ratio, as well as analyst estimates for its future dividends.
Have earnings and dividends been growing?
Stocks of companies that generate sustainable earnings growth typically have the best dividend prospects because it’s easier to raise the dividend when earnings are rising. Investors love dividends, so if earnings fall and dividends get cut, expect stocks to sell off massively at the same time. That’s why it’s comforting to see that Ten Entertainment Group’s earnings have been soaring, growing 37% annually over the past five years. Earnings per share are growing very fast, and the company pays out a relatively low percentage of profits and cash flow. Companies with low earnings growth and low payout ratios are often the best long-term dividend stocks because the company can both grow earnings and increase the percentage of earnings that pay out, essentially multiplying the dividend.
Another key way to gauge a company’s dividend prospects is by measuring its historical dividend growth rate. Based on dividend payments over the past six years, the top 10 entertainment groups have increased their dividends by an average of 15% per year. The recent rapid growth in EPS and dividends is well worth a look.
the bottom line
Can Ten Entertainment Group Sustain Its Dividend Payment? Ten Entertainment Group increased earnings per share while reinvesting in the business. Unfortunately, it has cut its dividend at least once in the past six years, but the conservative payout ratio makes the current dividend look sustainable. There’s a lot to like about Ten Entertainment Group, and we’ll prioritize taking a closer look at it.
At this point, you need to research the risks facing Ten Entertainment Group.For example, Ten Entertainment Group has 3 warning signs (and 1 more unpleasant) We think you should know.
A common investing mistake is to buy the first stock you see that interests you.here you can find A complete list of high-yield dividend stocks.
Have feedback on this article? Concerned about content? keep in touch Contact us directly. Alternatively, email the editorial team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We use only an unbiased methodology to provide reviews based on historical data and analyst forecasts, 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 into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any of the stocks mentioned.
Join Paid User Research Sessions
you will receive a $30 Amazon Gift Card Take 1 hour of your time while helping us build better investing tools for individual investors like you. register here
[ad_2]
Source link