In This Article:
Alaris Equity Partners Income Trust (TSE:AD.UN) is about to trade ex-dividend in the next four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. In other words, investors can purchase Alaris Equity Partners Income Trust's shares before the 28th of September in order to be eligible for the dividend, which will be paid on the 16th of October.
The company's next dividend payment will be CA$0.34 per share, on the back of last year when the company paid a total of CA$1.36 to shareholders. Looking at the last 12 months of distributions, Alaris Equity Partners Income Trust has a trailing yield of approximately 9.2% on its current stock price of CA$14.8. 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 Alaris Equity Partners Income Trust can afford its dividend, and if the dividend could grow.
Check out our latest analysis for Alaris Equity Partners Income Trust
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. Alaris Equity Partners Income Trust is paying out an acceptable 62% of its profit, a common payout level among most companies.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
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. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's comforting to see Alaris Equity Partners Income Trust's earnings have been skyrocketing, up 46% per annum for the past five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, Alaris Equity Partners Income Trust has lifted its dividend by approximately 1.3% a year on average. Earnings per share have been growing much quicker than dividends, potentially because Alaris Equity Partners Income Trust is keeping back more of its profits to grow the business.