3 Days Left Before Atrium Ljungberg AB (publ) (STO:ATRLJ B) Will Be Trading Ex-Dividend
On the 03 April 2019, Atrium Ljungberg AB (publ) (STO:ATRLJ B) will be paying shareholders an upcoming dividend amount of kr4.85 per share. However, investors must have bought the company’s stock before 28 March 2019 in order to qualify for the payment. That means you have only 3 days left! Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Atrium Ljungberg’s most recent financial data to examine its dividend characteristics in more detail.
Check out our latest analysis for Atrium Ljungberg
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5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is their annual yield among the top 25% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share risen in the past couple of years?
Is its earnings sufficient to payout dividend at the current rate?
Will it be able to continue to payout at the current rate in the future?
How does Atrium Ljungberg fare?
The company currently pays out 19% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 56% which, assuming the share price stays the same, leads to a dividend yield of 3.2%. However, EPS is forecasted to fall to SEK8.65 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. In the case of ATRLJ B it has increased its DPS from SEK2 to SEK4.85 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock.
Relative to peers, Atrium Ljungberg produces a yield of 2.9%, which is high for Real Estate stocks but still below the market’s top dividend payers.
Next Steps:
Considering the dividend attributes we analyzed above, Atrium Ljungberg is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three fundamental factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for ATRLJ B’s future growth? Take a look at our free research report of analyst consensus for ATRLJ B’s outlook.
Historical Performance: What has ATRLJ B’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
