TSE:BTO) is about to go ex-dividend in just 4 days. Ex-dividend means that investors that purchase the stock on or after the 21st of September will not receive this dividend, which will be paid on the 30th of September.” data-reactid=”28″>Some investors rely on dividends for growing their wealth, and if you’re one of those dividend sleuths, you might be intrigued to know that B2Gold Corp. (TSE:BTO) is about to go ex-dividend in just 4 days. Ex-dividend means that investors that purchase the stock on or after the 21st of September will not receive this dividend, which will be paid on the 30th of September.
B2Gold’s next dividend payment will be CA$0.04 per share, on the back of last year when the company paid a total of CA$0.08 to shareholders. Based on the last year’s worth of payments, B2Gold has a trailing yield of 2.3% on the current stock price of CA$9.19. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether B2Gold has been able to grow its dividends, or if the dividend might be cut.
Check out our latest analysis for B2Gold ” data-reactid=”30″> Check out our latest analysis for B2Gold
If a company pays out more in dividends than it earned, then the dividend might become unsustainable – hardly an ideal situation. B2Gold paid out just 10% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. A useful secondary check can be to evaluate whether B2Gold generated enough free cash flow to afford its dividend. Luckily it paid out just 4.7% of its free cash flow last year.
It’s positive to see that B2Gold’s dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
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?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That’s why it’s comforting to see B2Gold’s earnings have been skyrocketing, up 77% per annum for the past five years. B2Gold looks like a real growth company, with earnings per share growing at a cracking pace and the company reinvesting most of its profits in the business.
Unfortunately B2Gold has only been paying a dividend for a year or so, so there’s not much of a history to draw insight from.
To Sum It Up
Is B2Gold worth buying for its dividend? B2Gold has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. B2Gold looks solid on this analysis overall, and we’d definitely consider investigating it more closely.
5 warning signs for B2Gold (1 is significant!) that deserve your attention before investing in the shares.” data-reactid=”55″>So while B2Gold looks good from a dividend perspective, it’s always worthwhile being up to date with the risks involved in this stock. For example, we’ve found 5 warning signs for B2Gold (1 is significant!) that deserve your attention before investing in the shares.
a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.” data-reactid=”56″>A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising 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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