It looks like Ituran Location and Control Ltd. (NASDAQ:ITRN) is about to go ex-dividend in the next two 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. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Meaning, you will need to purchase Ituran Location and Control's shares before the 18th of June to receive the dividend, which will be paid on the 2nd of July.
The company's upcoming dividend is US$0.39 a share, following on from the last 12 months, when the company distributed a total of US$1.56 per share to shareholders. Based on the last year's worth of payments, Ituran Location and Control stock has a trailing yield of around 6.0% on the current share price of US$25.97. If you buy this business for its dividend, you should have an idea of whether Ituran Location and Control's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.
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. Fortunately Ituran Location and Control's payout ratio is modest, at just 47% of profit. A useful secondary check can be to evaluate whether Ituran Location and Control generated enough free cash flow to afford its dividend. Luckily it paid out just 24% of its free cash flow last year.
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 how much of its profit Ituran Location and Control paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. If earnings fall far enough, the company could be forced to cut its dividend. So we're not too excited that Ituran Location and Control's earnings are down 2.7% a year over the past five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Ituran Location and Control has delivered 6.1% dividend growth per year on average over the past 10 years.
To Sum It Up
Has Ituran Location and Control got what it takes to maintain its dividend payments? Earnings per share are down meaningfully, although at least the company is paying out a low and conservative percentage of both its earnings and cash flow. It's definitely not great to see earnings falling, but at least there may be some buffer before the dividend needs to be cut. While it does have some good things going for it, we're a bit ambivalent and it would take more to convince us of Ituran Location and Control's dividend merits.
In light of that, while Ituran Location and Control has an appealing dividend, it's worth knowing the risks involved with this stock. For example, we've found 1 warning sign for Ituran Location and Control that we recommend you consider before investing in the business.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
イツーラン・ロケーション・アンド・コントロール株式会社(NASDAQ:ITRN)は、次の2日間で配当を行う予定のようです。 配当落ち日は、株主が配当を受け取るためには、必要な記録の日であり、配当落ち日は記録基準日の1日前に発生します。 つまり、配当を受け取るためには、6月18日までにIturan Location and Controlの株式を購入する必要があります。その配当は7月2日に支払われます。取引は記録基準日前に決済されている必要があるため、配当落ち日が重要です。
同社の次回の配当は1株当たりUS$0.39で、過去12か月間で同社は株主に1株当たりUS$1.56を配当しました。過去1年間の配当支払いを基に、現在の株価US$25.97でIturan Location and Control株式のトレーリング利回りは約6.0%になります。配当目当てでこのビジネスを購入する場合、Ituran Location And Controlの配当が信頼性があるか、持続可能かどうかを確認する必要があります。したがって、配当支払いがカバーされているかどうか、そして収益が成長しているかどうかを確認する必要があります。
配当金は通常、会社の利益から支払われるため、会社が稼いだ利益を上回る額を支払う場合は、その配当金は通常、大きなリスクに晒されます。幸いなことに、Ituran Location and Controlの配当性向は控えめで、利益のわずか47%しか支払われていません。また、Ituran Location and Controlが配当金を支払うのに十分なフリーキャッシュフローを生み出したかどうかを確認するためには、有用な二次的チェックができます。幸い、同社は昨年、フリーキャッシュフローのうちわずか24%を支払いました。
Ituran Location and Controlは、配当金を維持するために必要なものを持っていますか?1株当たり利益は実質的に減少していますが、少なくとも同社は利益とキャッシュフローの両方の低く保守的な割合を支払っています。利益が減少しているのを見るのは確かに良くないですが、少なくとも配当金を削減する必要がある前に少し余裕がある場合があります。良いことがいくつかあるにせよ、Ituran Location and Controlの配当股利のメリットについて私たちは少し曖昧なので、もっと説得力が必要です。
これにより、Ituran Location and Controlには魅力的な配当がありますが、この株式に関連するリスクを知る価値があります。たとえば、Ituran Location and Controlには、投資する前に考慮する必要がある警告が1つあります。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。