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 Huntsman Corporation (NYSE:HUN) is about to go ex-dividend in just 3 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. 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 Huntsman's shares before the 14th of September in order to be eligible for the dividend, which will be paid on the 30th of September.

The company's next dividend payment will be US$0.21 per share. Last year, in total, the company distributed US$0.85 to shareholders. Calculating the last year's worth of payments shows that Huntsman has a trailing yield of 3.1% on the current share price of $27.28. If you buy this business for its dividend, you should have an idea of whether Huntsman's dividend is reliable and sustainable. So we need to investigate whether Huntsman can afford its dividend, and if the dividend could grow.

See our latest analysis for Huntsman

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. Huntsman paid out just 14% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 17% of its free cash flow as dividends last year, which is conservatively low.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

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. 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 Huntsman's earnings have been skyrocketing, up 35% per annum for the past five years. Huntsman 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.