Investors who rely on dividends for growing their wealth may be interested to know that NORMA Group SE (ETR:NOEJ) is set to go ex-dividend in just four days. The ex-dividend date is crucial for investors as it determines whether they will receive the upcoming dividend payment. In this case, investors must purchase NORMA Group’s shares before the 17th of May to be eligible for the €0.45 per share dividend, which will be paid on the 21st of May.
While dividends are a significant contributor to investment returns, it is essential to ensure that the company can sustain its dividend payments. NORMA Group has a trailing yield of 2.8% and paid out 50% of its earnings to investors last year, indicating a normal payout level. Additionally, the company only paid out 17% of its free cash flow, suggesting that the dividend is sustainable.
However, investors should be cautious as NORMA Group’s earnings per share have declined by 21% annually over the past five years. The company’s dividend payments per share have also decreased by 2.4% per year on average over the past decade. While the dividend may be sustainable for now, declining earnings pose a threat to future dividend payments.
In conclusion, while NORMA Group’s dividend may be sustainable, investors should be aware of the risks the company faces. It is essential to conduct thorough research and consider all factors before making investment decisions.