It looks like Vistin Pharma ASA (OB:VISTIN) is about to go ex-dividend in the next 4 days. Ex-dividend means that investors that purchase the stock on or after the 20th of May will not receive this dividend, which will be paid on the 5th of June.

Vistin Pharma's next dividend payment will be kr1.00 per share. Last year, in total, the company distributed kr1.00 to shareholders. Calculating the last year's worth of payments shows that Vistin Pharma has a trailing yield of 9.1% on the current share price of NOK11. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.

View our latest analysis for Vistin Pharma

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Vistin Pharma reported a loss last year, so it's not great to see that it has continued paying a dividend.

Click here to see how much of its profit Vistin Pharma paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. Vistin Pharma reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, four years ago, Vistin Pharma has lifted its dividend by approximately 14% a year on average.

Get our latest analysis on Vistin Pharma's balance sheet health here.

The Bottom Line

Is Vistin Pharma an attractive dividend stock, or better left on the shelf? These characteristics don't generally lead to outstanding dividend performance, and investors may not be happy with the results of owning this stock for its dividend.

So if you're still interested in Vistin Pharma despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. For example, we've found 5 warning signs for Vistin Pharma (1 is a bit concerning!) that deserve your attention before investing in the shares.

If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

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.

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. Thank you for reading.