know about this Here’s what we like about Atlantic Insurance Company’s (CSE:ATL) upcoming dividend
in complete details.
Atlantic Insurance Company Public Limited (CSE:ATL) is poised to trade ex-dividend in the next two days. The ex-dividend date is usually set to one business day before the record date, which is the deadline by which you must be present on the company’s books as a shareholder to receive the dividend. The ex-dividend date is important as the settlement process involves two full business days. So if you don’t make it by that date, you won’t appear on the company’s books on the record date. Consequently, Atlantic Insurance Company investors who purchase the shares on or after June 9 will not receive the dividend, which will be paid on June 27.
Atlantic Insurance Company’s upcoming dividend is €0.12 per share, higher than last year’s total dividend per share of €0.085. Dividends contribute greatly to investment returns for long-term holders, but only if the dividend continues to be paid. So we need to check if dividend payments are covered and if earnings are growing.
See our latest analysis of Atlantic Insurance Company
If a company pays out more dividends than it earned, then the dividend may become unsustainable, which is not an ideal situation. Atlantic Insurance Company paid out a comfortable 28% of its profits last year.
When a company paid less in dividends than it earned in earnings, this generally suggests that its dividends are affordable. The lower the % of your profit that you pay out, the higher the margin of safety for the dividend if the company goes into recession.
Click here to see how much of your earnings Atlantic Insurance Company paid out in the last 12 months.
Have earnings and dividends been growing?
Stocks of companies that generate sustainable earnings growth tend to offer the best dividend prospects, as it is easier to increase dividends when earnings rise. If earnings fall enough, the company could be forced to cut its dividend. That’s why it’s reassuring to see that Atlantic Insurance Company’s profits have skyrocketed, 21% annually for the last five years.
Many investors will assess a company’s dividend yield by assessing how much dividend payments have changed over time. Since the beginning of our data 10 years ago, Atlantic Insurance Company has increased its dividend by approximately 2.0% per year on average. It’s good to see that both earnings and dividends have improved, although the former have risen much faster than the latter, possibly because the company reinvested more of its profits in growth.
From a dividend perspective, should investors buy or avoid Atlantic Insurance Company? Companies like Atlantic Insurance Company, which are growing rapidly and paying out a small fraction of profits, typically reinvest heavily in their businesses. This strategy can add significant long-term shareholder value, as long as not too many new shares are issued. Atlantic Insurance Company ticks a lot of boxes for us from a dividend perspective, and we believe these characteristics should make the company more worthy of attention.
In light of that, while Atlantic Insurance Company has an attractive dividend, it pays to be aware of the risks involved with this stock. Regarding investment risks, we have identified 2 warning signs with Atlantic Insurance Company and understanding them should be part of your investment process.
If you are in the market for strong dividend payers, we recommend reviewing our selection of stocks with superior dividends.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock, and it does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.