by MLP SE (ETR: MLP) is about to trade ex-dividend in the next 3 days. The ex-dividend date is usually two working days before the record date, which is the closing date for shareholders to be present in the books of the company to be eligible for a dividend payment. The ex-dividend date is of consequence, because when a share is purchased or sold, trade can last two working days or more to settle. This means that before 26 June you have to buy the shares of MLP to receive the dividend, which will be paid on 30 June.
The upcoming dividend of the company is € 0.36 per share, following the last 12 months, when the company distributed a total of € 0.36 per share to the shareholders. The total dividend payments from last year show that MLP is a backlog of 4.0% on the current share price of € 8.93. We would like to see companies pay a dividend, but it is also important to be sure that laying the golden eggs will not kill our golden goose! We must therefore investigate whether MLP can pay the dividend and whether the dividend could grow.
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Dividends are usually paid from business profits, so if a company pays more than it deserves, the dividend usually runs a greater risk of being cut. MLP paid 57% of its income to investors last year, a normal level of payout for most companies.
Companies that pay fewer dividends than they earn in profit generally have more sustainable dividends. The lower the payment ratio, the more wobble space the company has before it can be forced to reduce the dividend.
See our latest analysis for MLP
Click here to see the company’s payment ratio, plus estimates of analysts of his future dividends.
Shares in companies that generate sustainable profit growth often make the best dividend perspectives, because it is easier to lift the dividend when the income rises. If the income falls far enough, the company can be forced to reduce its dividend. Fortunately for readers, the profit per share of MLP has been growing 13% per year over the past five years.
The most important way in which most investors will assess the dividend perspectives of a company is to control the historical percentage of dividend growth. Since the start of our data, 10 years ago, MLP has canceled its dividend on average by around 7.8% per year. It is encouraging to see that the company lifts dividends while the income is growing, which at least suggests any business interest to pay shareholders.
