LON:PLUS) is about to trade ex-dividend in the next two days. This means that investors who purchase shares on or after the 20th of August will not receive the dividend, which will be paid on the 11th of November.” data-reactid=”28″>Plus500 Ltd. (LON:PLUS) is about to trade ex-dividend in the next two days. This means that investors who purchase shares on or after the 20th of August will not receive the dividend, which will be paid on the 11th of November.
The upcoming dividend for Plus500 is UK£0.95 per share, increased from last year’s total dividends per share of UK£0.65. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Plus500 can afford its dividend, and if the dividend could grow.
View our latest analysis for Plus500 ” data-reactid=”30″>View our latest analysis for Plus500
If a company pays out more in dividends than it earned, then the dividend might become unsustainable – hardly an ideal situation. Plus500 paid out a comfortable 35% of its profit last year.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
here to see the company’s payout ratio, plus analyst estimates of its future dividends.” data-reactid=”37″>Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It’s encouraging to see Plus500 has grown its earnings rapidly, up 34% a year for the past five years.
Another key way to measure a company’s dividend prospects is by measuring its historical rate of dividend growth. In the past six years, Plus500 has increased its dividend at approximately 20% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.
Final Takeaway
Should investors buy Plus500 for the upcoming dividend? Companies like Plus500 that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. In summary, Plus500 appears to have some promise as a dividend stock, and we’d suggest taking a closer look at it.
3 warning signs (and 1 which is potentially serious) we think you should know about.” data-reactid=”55″>With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. For example, Plus500 has 3 warning signs (and 1 which is potentially serious) we think you should know about.
a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.” data-reactid=”56″>We wouldn’t recommend just buying the first dividend stock you see, though. Here’s a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”57″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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