Jiangsu Zijin Rural Commercial Bank Co.,Ltd (SHSE:601860) stock is about to trade ex-dividend in 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 important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. This means that investors who purchase Jiangsu Zijin Rural Commercial BankLtd's shares on or after the 16th of June will not receive the dividend, which will be paid on the 16th of June.

The company's next dividend payment will be CN¥0.10 per share, and in the last 12 months, the company paid a total of CN¥0.10 per share. Based on the last year's worth of payments, Jiangsu Zijin Rural Commercial BankLtd has a trailing yield of 3.8% on the current stock price of CN¥2.64. If you buy this business for its dividend, you should have an idea of whether Jiangsu Zijin Rural Commercial BankLtd'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 Jiangsu Zijin Rural Commercial BankLtd

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Jiangsu Zijin Rural Commercial BankLtd has a low and conservative payout ratio of just 22% of its income after tax.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see how much of its profit Jiangsu Zijin Rural Commercial BankLtd 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 earnings fall far enough, the company could be forced to cut its dividend. This is why it's a relief to see Jiangsu Zijin Rural Commercial BankLtd earnings per share are up 5.1% per annum over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. It looks like the Jiangsu Zijin Rural Commercial BankLtd dividends are largely the same as they were four years ago.

Final Takeaway

Is Jiangsu Zijin Rural Commercial BankLtd an attractive dividend stock, or better left on the shelf? Jiangsu Zijin Rural Commercial BankLtd has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. Jiangsu Zijin Rural Commercial BankLtd ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.

So while Jiangsu Zijin Rural Commercial BankLtd looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Case in point: We've spotted 1 warning sign for Jiangsu Zijin Rural Commercial BankLtd you should be aware of.

If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.