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Kingstone Companies, Inc. (NASDAQ:KINS) 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 Kingstone Companies' shares before the 29th of November to receive the dividend, which will be paid on the 15th of December.
The company's next dividend payment will be US$0.04 per share. Last year, in total, the company distributed US$0.16 to shareholders. Based on the last year's worth of payments, Kingstone Companies has a trailing yield of 3.2% on the current stock price of $4.97. If you buy this business for its dividend, you should have an idea of whether Kingstone Companies'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.
View our latest analysis for Kingstone Companies
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Kingstone Companies paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Companies with falling earnings are riskier for dividend shareholders. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. Kingstone Companies reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Kingstone Companies has delivered an average of 2.9% per year annual increase in its dividend, based on the past 10 years of dividend payments.
Get our latest analysis on Kingstone Companies's balance sheet health here.
Final Takeaway
From a dividend perspective, should investors buy or avoid Kingstone Companies? It's definitely not great to see that it paid a dividend despite reporting a loss last year. Worse, the general trend in its earnings looks negative in recent times. These characteristics don't generally lead to outstanding dividend performance, and investors may not be happy with the results of owning this stock for its dividend.