Should You Buy Olympia Financial Group Inc. (TSE:OLY) Before It Goes Ex-Dividend?

In the world of investing, timing is everything. As Olympia Financial Group Inc. (TSE:OLY) approaches its ex-dividend date, investors are left wondering if now is the right time to buy. With a dividend yield of 7.6% and a stock price trading at 44.8% below its estimated fair value, the temptation is strong. But is it smart to buy before the ex-dividend date? Let's dive in and find out.

First, let's look at the numbers. Olympia Financial Group Inc. has a strong financial health score of 6/6, indicating robust financial stability. The company's earnings per share (EPS) have shown positive growth, with the EPS for the full year 2024 exceeding analyst expectations. This suggests that the company has been performing well and may continue to do so.

However, there are some risks to consider. Earnings are forecast to decline by an average of 7.1% per year for the next 3 years, and there has been significant insider selling over the past 3 months. This could signal that insiders believe the stock is overvalued or that they have concerns about the company's future prospects.

So, should you buy before the ex-dividend date? It depends on your investment strategy and risk tolerance. If you're an income-focused investor looking for a high dividend yield, Olympia Financial Group Inc. could be a good option. However, if you're more concerned about capital appreciation, you may want to wait and see how the company's earnings perform in the coming years.

In conclusion, while Olympia Financial Group Inc. has some attractive features, such as a high dividend yield and strong financial health, there are also risks to consider. As always, it's important to do your own research and consult with a financial advisor before making any investment decisions.