Arsagera asset management The stock (MCX: ARSA) is about to trade ex-dividend in 4 days. The ex-dividend date is a business day before a company’s registration date, which is the date the company determines which shareholders are entitled to receive a dividend. It is important to know the ex-dividend date because any transaction in the share must have been settled by the registration date at the latest. This means that investors who buy Arsagera Asset Management shares on or after July 2 will not receive the dividend, which will be paid on January 1.
The company’s next dividend will be 0.20 yen per share. Last year, in total, the company distributed 0.20 yen to shareholders. Based on the value of last year’s payouts, Arsagera Asset Management has a rolling 3.2% return on the current share price of 6.24 RUB. We love to see companies pay a dividend, but it’s also important to make sure that laying the golden eggs is not going to kill our goose that lays the golden eggs! Therefore, readers should always check whether Arsagera Asset Management was able to increase its dividends or whether the dividend could be reduced.
Discover our latest analysis for Arsagera Asset Management
If a company pays more dividends than it has earned, then the dividend could become unsustainable – which is not an ideal situation. Arsagera Asset Management distributed an unsustainable 127% of its profits last year as dividends to shareholders. Without extenuating circumstances, we would consider the dividend to be at risk of falling.
As a general rule, the higher the payout rate of a company, the more the dividend is likely to be reduced.
Click here to see how much of its profits Arsagera Asset Management has paid in the last 12 months.
Have profits and dividends increased?
Companies with strong growth prospects generally make the best dividend payers because dividends are easier to grow when earnings per share improve. Investors love dividends, so if profits go down and the dividend is reduced, expect a stock to be sold massively at the same time. That’s why it’s heartwarming to see Arsagera Asset Management’s profits soar, rising 29% annually over the past five years.
Another key way to measure a company’s dividend outlook is to measure its historical rate of dividend growth. Over the past 10 years, Arsagera Asset Management has increased its dividend by around 17% per year on average. It is exciting to see that earnings and dividends per share have grown rapidly over the past few years.
Is Arsagera Asset Management an attractive dividend-paying stock, or better left on the back burner? We are not thrilled to see that Arsagera Asset Management’s dividend was not well covered by last year’s earnings, although it is good to see earnings increasing. It might be worth researching if the company is reinvesting in growth projects that could increase profits and dividends in the future, but for now we are on the close on its dividend outlook.
So if you want to dig deeper into Arsagera Asset Management, you will find it worth knowing the risks that this stock faces. To help you, we have discovered 6 warning signs for Arsagera Asset Management (1 is a little worrying!) Which you should know before buying the stocks.
If you are in the dividend-paying stock market, we recommend that you check out our list of the highest dividend-paying stocks with a yield above 2% and a future dividend.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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