Detection Technology Oyj (HEL:DETEC) is scheduled to go ex-dividend in three days, affording investors the opportunity to acquire its dividend of €0.23 per share. It is imperative to note the ex-dividend date as it determines dividend eligibility. Prospective recipients must purchase shares before the 28th of March in order to qualify for the payout on the 9th of April.
With a trailing yield of 1.8%, assessing the sustainability of the company’s dividend is prudent. A payout ratio of 61% for the previous year indicates that the dividend is being dispensed at a customary rate for most businesses. Additionally, the utilization of 39% of free cash flow for dividend disbursements suggests that their dividend is dependable and enduring.
Nevertheless, Detection Technology Oyj has experienced a consistent decline in its earnings per share by an average of 18% annually over the past five years. Moreover, their dividend payments per share have also decreased by 6.8% annually over the last six years. This trend may raise doubts for potential investors considering the company for its dividends.
In conclusion, despite its positive attributes, the diminishing earnings per share warrant concern. Prospective investors are advised to conduct a comprehensive assessment of its fair value estimations and financial viability before making any decisions.
As always, it is imperative to seek professional financial guidance before proceeding with any investment strategies. This article is intended to offer general insights and should not be construed as financial advice.