Be Sure To Check Out 3i Group plc (LON:III) Before It Goes Ex-Dividend
If you're a regular reader here at Simply Wall St, you'll know that we're big fans of dividends. That's why we're excited to share news that 3i Group plc (LON:III) will soon be trading ex-dividend in just four days. For those not familiar with the term, the ex-dividend date is typically one business day before the record date. This is the date on which a company sets out which shareholders are eligible to receive a dividend. It's important to know the ex-dividend date because any trades on the stock must be settled on or before the record date. Essentially, this means that any investors who buy shares in 3i Group after 22 June won't be eligible for the upcoming dividend payout. The dividend is set to be paid on 28 July.
The upcoming dividend payment from the company will be UK£0.30 for each share, and in the past year, they have paid a total of UK£0.53 per share. Over the recent 12 months, 3i Group's trailing yield on its current stock price of £19.9 is about 2.7%. To determine the reliability and sustainability of 3i Group's dividend, investors who prioritize dividends should assess whether the dividend is backed by earnings and increasing.
Take a look at our most recent assessment for 3i Group.
When a corporation gives away a larger sum in dividends compared to its earnings, the sustainability of the dividend is jeopardized, which is unfavorable. According to our analysis, 3i Group disbursed a mere 11% of its profits in dividends during the previous year, indicating a cautious approach and a significant safety net against unforeseen circumstances.
Usually, when a company has low payout ratios, its dividend is more likely to withstand any financial difficulties.
To view the payout ratio of the company and predictions made by analysts on its future dividends, simply click on the provided link.
Are Earnings And Dividends Increasing?
When it comes to good dividend options, stocks from companies with consistent growth in earnings are often the best choice. When earnings rise, it becomes possible to increase dividends with ease. On the other hand, during times of economic slowdown, if a company reduces its dividends, its overall value could drastically decline. That's why it's reassuring to observe that 3i Group has seen a massive increase in earnings over the past five years, to the tune of 26% each year.
A lot of investors like to review a company's dividend history to see how well it has performed. Over the last decade, 3i Group has increased its dividend payouts by an average of 21% per year. It's fantastic news that the company's earnings and dividends have been growing rapidly in recent times.
Is 3i Group worth investing in for the upcoming dividend? Typically, when a company is experiencing rapid growth and holding onto most of its profits, reinvesting the earnings usually results in more value being created than distributing dividends to shareholders. This combination is highly desirable in terms of investment potential as it can lead to significant returns for investors over a prolonged period of time. After analyzing the situation, it appears that 3i Group could be an excellent option for those seeking a promising dividend stock. Further research may be necessary to confirm this, however.
When conducting in-depth stock research, it's important to pay attention to any potential risks associated with a particular stock. In this regard, we've pinpointed 2 warning signals in relation to 3i Group's stock, and gaining an understanding of these risks should be a vital component of your overall investment strategy.
One mistake that many investors make is purchasing the initial stock they come across that catches their interest. You can discover a comprehensive inventory of lucrative stocks that yield high dividends here.
Do you have any thoughts on this article? Are you worried about the information presented? Contact us directly to let us know. You can also email us at editorial-team (at) simplywallst.com.
This post from Simply Wall St talks about general information. They give their opinion based on past records and expert predictions but don't have any bias, and their posts aren't meant to be financial recommendations. Their ideas don't suggest whether you should buy or sell any securities, and they don't factor in your objectives or financial standing. Their goal is to provide you with analysis for a more extended period while focusing on essential information. However, their analysis may not consider current company announcements or intangible material. Additionally, Simply Wall St doesn't have any stake in the securities they mention.
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