Ten Entertainment Group plc (Ron: Daegu) plans to trade ex-dividend within the next three days. The ex-dividend date is one business day prior to his record date and is the closing date for a shareholder to be on the company’s books and entitled to pay a dividend. The ex-dividend date is important as the settlement process takes two full business days. Therefore, if you miss that date, it will not appear on the company’s books on the record date. This means that investors who purchased shares in Ten Entertainment Group after May 18th will not receive the dividend due on June 13th.
The company’s next dividend payment will be GBP 0.07 per share, following the company’s total payment of GBP 0.14 to shareholders last year. Looking at distributions over the past 12 months, Ten Entertainment Group’s current share price of £2.7 yields around 5.2%. If you buy this business for dividends, you need to understand whether Ten Entertainment Group’s dividends are reliable and sustainable. Therefore, it is necessary to investigate whether Ten Entertainment Group can afford to pay a dividend and whether it may increase.
Check out the latest analysis from Ten Entertainment Group.
Dividends are usually paid out of a company’s earnings. Dividends can become unsustainable if a company pays more in dividends than it earns. Ten Entertainment Group comfortably paid 26% of its profits last year. However, cash flow is usually more important than earnings in assessing the sustainability of dividends, so we always need to check whether a company is generating enough cash to pay dividends. Fortunately, the company paid just 7.7% of free cash flow last year.
It is reassuring that dividends are covered by both profit and cash flow. This generally suggests that dividends are sustainable as long as earnings do not plummet.
click Here you can see the company’s payout ratio and analyst’s forecasts for future dividends.
Are profits and dividends growing?
It’s easier to raise dividends when earnings are rising, so stocks in companies that produce sustained earnings growth often offer the best dividend prospects. Investors love dividends, so if earnings decline and dividends are cut, you can expect a big sell off of stocks at the same time. That’s why it’s reassuring to see Ten Entertainment Group’s revenues grow exponentially, growing 37% annually over the past five years. Earnings per share are growing very quickly and the company is a relatively small percentage of earnings and cash flow. Companies with growing earnings and low payout ratios are often the best long-term dividend stocks because they can pay a higher percentage of earnings while growing earnings, essentially doubling their dividends.
Another important way to measure a company’s dividend outlook is to measure historical dividend growth. Ten Entertainment Group has delivered an average annual dividend increase of 15% based on dividend payouts over the past six years. Earnings per share and dividend have both grown rapidly lately, which is great.
Has Ten Entertainment Group got what it takes to maintain its dividend payout? Ten Entertainment Group has grown its earnings per share while reinvesting in its business. Unfortunately, it has cut its dividend at least once in the last six years, but its conservative payout ratio makes its current dividend look sustainable. There are so many things I love about Ten Entertainment Group that I would like to make it a priority to take a closer look.
In that regard, it is necessary to investigate what risks Ten Entertainment Group faces. For example, Ten Entertainment Group 3 warning signs (and 1 is a bit offensive) I think you should know about
A common investment mistake is to buy the first stock you find that interests you.can be found here A complete list of high dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst projections, and articles are not intended as financial advice. This is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on underlying data. Please note that our analysis may not take into account the latest announcements or qualitative material from price-sensitive companies. Simply Wall St does not have any positions in any of the securities mentioned.
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