Siili Solutions Oyj (HEL:SIILI): Ex-Dividend Is In 3 Days

Important news for shareholders and potential investors in Siili Solutions Oyj (HEL:SIILI): The dividend payment of €0.23 per share will be distributed to shareholders on 05 April 2019, and the stock will begin trading ex-dividend at an earlier date, 28 March 2019. Is this future income a persuasive enough catalyst for investors to think about Siili Solutions Oyj as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.

Check out our latest analysis for Siili Solutions Oyj

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5 questions I ask before picking a dividend stock

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

  • Does it pay an annual yield higher than 75% of dividend payers?

  • Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

  • Has dividend per share risen in the past couple of years?

  • Is is able to pay the current rate of dividends from its earnings?

  • Will it have the ability to keep paying its dividends going forward?

HLSE:SIILI Historical Dividend Yield, March 24th 2019
HLSE:SIILI Historical Dividend Yield, March 24th 2019

How well does Siili Solutions Oyj fit our criteria?

Siili Solutions Oyj has a trailing twelve-month payout ratio of 71%, meaning the dividend is sufficiently covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.

If you want to dive deeper into the sustainability of a certain payout ratio, you may wish to consider the cash flow of the business. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.

If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view Siili Solutions Oyj as a dividend investment. It has only been consistently paying dividends for 6 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.

Compared to its peers, Siili Solutions Oyj has a yield of 1.8%, which is high for IT stocks but still below the low risk savings rate.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in Siili Solutions Oyj for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. 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. I’ve put together three relevant factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for SIILI’s future growth? Take a look at our free research report of analyst consensus for SIILI’s outlook.

  2. Valuation: What is SIILI worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether SIILI is currently mispriced by the market.

  3. 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.