Three Crucial Checks Before Investing in Sailfish Royalty Corp. (CVE:FISH) for Its Upcoming Dividend

Ever since Sailfish Royalty Corp. (CVE:FISH) announced its upcoming dividend, investors have been eager to know if it's a wise investment. Before you dive in, consider these three crucial checks to ensure you're making an informed decision.

1. Dividend Sustainability and Payout Ratio
The first thing to consider is the sustainability of the dividend and the company's payout ratio. Sailfish Royalty Corp. has an annual dividend of 0.072 CAD per share, with a yield of 5.21%. While this yield is attractive, it's essential to examine the payout ratio to ensure the dividend is sustainable.

According to the data provided, the payout ratio is not explicitly stated. However, we can infer that the company has a stable cash flow, as it pays dividends quarterly. To gain a more comprehensive understanding of the dividend's sustainability, it would be beneficial to analyze additional financial metrics, such as earnings per share, return on equity, and debt-to-equity ratio.

2. Dividend Growth and Historical Performance
Another critical factor to consider is the historical dividend growth rate and the company's overall performance. Sailfish Royalty Corp. has a dividend growth rate of 13.8% over the past 10 years, which is higher than the industry average of 1.3% for consumer retailing companies in the ID market.

The company's dividend yield of 3.2% is also higher than the bottom 25% of dividend payers in the ID market (1.5%), but lower than the top 25% (6.2%). This suggests that Sailfish Royalty Corp. may be an attractive option for investors seeking high dividend yields.



3. Earnings Growth Prospects and Financial Health
Before investing in Sailfish Royalty Corp. for its upcoming dividend, it's crucial to assess the company's earnings growth prospects and overall financial health. The company has a history of consistent earnings growth, with an average annual earnings per share (EPS) growth rate of 10.5% over the past five years.

To further evaluate the company's financial health, consider analyzing additional financial metrics, such as return on assets, return on equity, and debt-to-equity ratio. These metrics can provide valuable insights into the company's ability to generate profits and manage its debt levels.

In conclusion, before investing in Sailfish Royalty Corp. (CVE:FISH) for its upcoming dividend, make sure to consider the dividend's sustainability, historical growth, and the company's earnings growth prospects and financial health. By conducting these three crucial checks, you'll be better equipped to make an informed investment decision.