Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Stern Immobilien AG (MUN:SY5N) is about to trade ex-dividend in the next 3 days. You can purchase shares before the 2nd of September in order to receive the dividend, which the company will pay on the 4th of September.

The upcoming dividend for Stern Immobilien will put a total of €1.20 per share in shareholders' pockets, up from last year's total dividends of €1.10. If you buy this business for its dividend, you should have an idea of whether Stern Immobilien's dividend is reliable and sustainable. As a result, readers should always check whether Stern Immobilien has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Stern Immobilien

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.

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

Have Earnings And Dividends Been Growing?

Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. It looks like the Stern Immobilien dividends are largely the same as they were two years ago.

The Bottom Line

Has Stern Immobilien got what it takes to maintain its dividend payments? Overall, it's not a bad combination, but we feel that there are likely more attractive dividend prospects out there.

Curious about whether Stern Immobilien has been able to consistently generate growth? Here's a chart of its historical revenue and earnings growth.

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

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.