Energiekontor AG (ETR:EKT) Shows Promise and Prepares to Issue Dividend

Energiekontor AG (ETR:EKT) stock is gearing up for an exciting event in just three days – the ex-dividend date. This crucial date, set one business day before the record date, determines whether shareholders will be eligible to receive the upcoming dividend payment. Investors looking to cash in on Energiekontor’s dividend should act fast and purchase shares before the 30th of May to secure their slice of the €1.20 per share payout on the 3rd of June.

With a trailing yield of approximately 1.7% based on the current share price of €71.60, Energiekontor’s dividend is certainly enticing. However, the sustainability of this dividend is key. Fortunately, the company’s conservative payout ratio of just 20% of its profit and 14% of its free cash flow from last year suggests that the dividend is well-covered and likely to continue.

Moreover, Energiekontor has been on a growth trajectory, with earnings per share increasing by a remarkable 67% annually over the past five years. This robust earnings growth, coupled with a historical dividend growth rate of around 9.1% per year over the last decade, bodes well for the company’s ability to maintain and potentially increase its dividend payments in the future.

While Energiekontor presents an attractive dividend opportunity, investors should always conduct thorough research and consider the risks involved. With that in mind, it’s essential to stay informed and vigilant, especially when it comes to dividend stocks.