Sanford Limited's Ex-Dividend Date: Opportunities and Risks for Investors
Sunday, Nov 24, 2024 3:32 pm ET
3min read In just four days, Sanford Limited (NZSE:SAN) will be trading ex-dividend, marking an important event for investors. The ex-dividend date, occurring on the 29th of November, determines which shareholders are eligible to receive the upcoming dividend. With the record date on the 30th of November, investors buying shares on or after the ex-dividend date will not be entitled to the payment, which will be distributed on the 9th of December.
Sanford's upcoming dividend is NZ$0.0588235 per share, following a total distribution of NZ$0.10 per share over the last year. This results in a trailing yield of 2.4% on the current share price of NZ$4.15. While the company's dividend is currently sustainable, with payout ratios of 48% for earnings and 40% for free cash flow, investors should be aware of the recent decline in earnings and dividends. Sanford has experienced a 14% per annum decline in earnings over the past five years and an average annual decline of 8.0% in dividend payments over the past decade.
Despite these concerns, Sanford's comfortable payout ratios suggest that the dividend may be sustainable even in the face of declining earnings. However, investors should monitor Sanford's earnings trajectory and management's response to these challenges.
As the ex-dividend date approaches, investors may consider the following strategies to capitalize on the dividend:
1. **Buy before the ex-dividend date**: Purchase shares of SAN before the 29th of November to be eligible for the dividend, which will be paid on the 9th of December.
2. **Diversify your portfolio**: Allocate a portion of your investment portfolio to SAN, given its comfortably low cash and profit payout ratios, which suggest a sustainable dividend.
3. **Monitor earnings and dividends**: Keep an eye on Sanford's earnings and dividend growth. Although recent years have seen a decline in both, management has been cutting dividends to maintain sustainability.
4. **Consider other dividend stocks**: While Sanford offers a 2.4% trailing yield, other strong dividend payers may provide a better risk-reward balance.
In conclusion, Sanford Limited's ex-dividend date is an important event for investors, as it impacts share price dynamics and determines who will receive the upcoming dividend. While Sanford's dividend is currently sustainable, investors should be aware of the recent decline in earnings and dividends. By considering the appropriate strategies and monitoring the company's financial performance, investors can make informed decisions about their investments in Sanford Limited.
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Sanford's upcoming dividend is NZ$0.0588235 per share, following a total distribution of NZ$0.10 per share over the last year. This results in a trailing yield of 2.4% on the current share price of NZ$4.15. While the company's dividend is currently sustainable, with payout ratios of 48% for earnings and 40% for free cash flow, investors should be aware of the recent decline in earnings and dividends. Sanford has experienced a 14% per annum decline in earnings over the past five years and an average annual decline of 8.0% in dividend payments over the past decade.
Despite these concerns, Sanford's comfortable payout ratios suggest that the dividend may be sustainable even in the face of declining earnings. However, investors should monitor Sanford's earnings trajectory and management's response to these challenges.
As the ex-dividend date approaches, investors may consider the following strategies to capitalize on the dividend:
1. **Buy before the ex-dividend date**: Purchase shares of SAN before the 29th of November to be eligible for the dividend, which will be paid on the 9th of December.
2. **Diversify your portfolio**: Allocate a portion of your investment portfolio to SAN, given its comfortably low cash and profit payout ratios, which suggest a sustainable dividend.
3. **Monitor earnings and dividends**: Keep an eye on Sanford's earnings and dividend growth. Although recent years have seen a decline in both, management has been cutting dividends to maintain sustainability.
4. **Consider other dividend stocks**: While Sanford offers a 2.4% trailing yield, other strong dividend payers may provide a better risk-reward balance.
In conclusion, Sanford Limited's ex-dividend date is an important event for investors, as it impacts share price dynamics and determines who will receive the upcoming dividend. While Sanford's dividend is currently sustainable, investors should be aware of the recent decline in earnings and dividends. By considering the appropriate strategies and monitoring the company's financial performance, investors can make informed decisions about their investments in Sanford Limited.
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