Euroz Hartleys Group Limited (ASX:EZL) is about to trade ex-dividend in the next four days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase Euroz Hartleys Group's shares before the 9th of February to receive the dividend, which will be paid on the 25th of February.

The company's next dividend payment will be AU$0.025 per share, on the back of last year when the company paid a total of AU$0.16 to shareholders. Last year's total dividend payments show that Euroz Hartleys Group has a trailing yield of 9.8% on the current share price of A$1.625. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Euroz Hartleys Group has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Euroz Hartleys Group

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Euroz Hartleys Group is paying out an acceptable 55% of its profit, a common payout level among most companies.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

Click here to see how much of its profit Euroz Hartleys Group paid out over the last 12 months. historic-dividend

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. If earnings fall far enough, the company could be forced to cut its dividend. It's encouraging to see Euroz Hartleys Group has grown its earnings rapidly, up 65% a year for the past five years.



The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Euroz Hartleys Group's dividend payments per share have declined at 1.2% per year on average over the past 10 years, which is uninspiring.

Final Takeaway

Is Euroz Hartleys Group worth buying for its dividend? Euroz Hartleys Group has an acceptable payout ratio and its earnings per share have been improving at a decent rate. We think this is a pretty attractive combination, and would be interested in investigating Euroz Hartleys Group more closely.

While it's tempting to invest in Euroz Hartleys Group for the dividends alone, you should always be mindful of the risks involved. Our analysis shows 2 warning signs for Euroz Hartleys Group and you should be aware of them before buying any shares.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology 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 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.