Bijou Brigitte modische Accessoires Aktiengesellschaft (ETR:BIJ) stock is about to trade ex-dividend in 4 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the 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 Bijou Brigitte modische Accessoires' shares before the 28th of June to receive the dividend, which will be paid on the 2nd of July.

The company's next dividend payment will be €3.50 per share. Last year, in total, the company distributed €3.50 to shareholders. Based on the last year's worth of payments, Bijou Brigitte modische Accessoires has a trailing yield of 8.6% on the current stock price of €40.75. If you buy this business for its dividend, you should have an idea of whether Bijou Brigitte modische Accessoires's dividend is reliable and sustainable. As a result, readers should always check whether Bijou Brigitte modische Accessoires has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Bijou Brigitte modische Accessoires

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. Bijou Brigitte modische Accessoires paid out 112% of profit in the past year, which we think is typically not sustainable unless there are mitigating characteristics such as unusually strong cash flow or a large cash balance. A useful secondary check can be to evaluate whether Bijou Brigitte modische Accessoires generated enough free cash flow to afford its dividend. Over the last year it paid out 64% of its free cash flow as dividends, within the usual range for most companies.

It's good to see that while Bijou Brigitte modische Accessoires's dividends were not covered by profits, at least they are affordable from a cash perspective. If executives were to continue paying more in dividends than the company reported in profits, we'd view this as a warning sign. Very few companies are able to sustainably pay dividends larger than their reported earnings.

Click here to see how much of its profit Bijou Brigitte modische Accessoires paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it's a relief to see Bijou Brigitte modische Accessoires earnings per share are up 2.7% per annum over the last five years.