Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see RheinLand Holding AG (DUSE:RLV) is about to trade ex-dividend in the next 3 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. 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. Thus, you can purchase RheinLand Holding's shares before the 14th of June in order to receive the dividend, which the company will pay on the 16th of June.
The upcoming dividend for RheinLand Holding will put a total of €1.30 per share in shareholders' pockets, up from last year's total dividends of €1.20. If you buy this business for its dividend, you should have an idea of whether RheinLand Holding's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
See our latest analysis for RheinLand Holding
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. RheinLand Holding paid out a comfortable 40% of its profit last year.
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 RheinLand Holding paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. That's why it's not ideal to see RheinLand Holding's earnings per share have been shrinking at 3.2% a year over the previous five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, RheinLand Holding has lifted its dividend by approximately 1.8% a year on average.
Final Takeaway
Is RheinLand Holding worth buying for its dividend? RheinLand Holding's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.