QANTM Intellectual Property Limited (ASX: QIP) to pay dividend of AU $ 0.034 in two days
QANTM Intellectual Property Limited The stock (ASX: QIP) is set to trade ex-dividend in two days. Typically, the ex-dividend date is one business day prior to the record date which is the date a company determines which shareholders are eligible to receive a dividend. It is important to know the ex-dividend date, as any transaction in the share must have been settled by the registration date at the latest. This means that you will have to buy the shares of QANTM Intellectual Property before September 1 to receive the dividend, which will be paid on October 7.
The company’s next dividend payment will be AU $ 0.034 per share. Last year, in total, the company distributed AU $ 0.074 to shareholders. Calculating the value of payments from last year shows that QANTM’s IP has a rolling 6.4% return on the current stock price of $ 1.165A. We love to see companies pay a dividend, but it is also important to make sure that laying the golden eggs will not kill our goose that lays the golden eggs! You have to see if the dividend is covered by profits and if it increases.
Check out our latest analysis for QANTM intellectual property
Dividends are usually paid out of the company’s profits, so if a company pays more than it earned, its dividend is usually at risk of being reduced. QANTM’s intellectual property has a low and conservative payout ratio of only 9.1% of its after-tax income. Having said that, even very profitable companies can sometimes not generate enough cash to pay the dividend, which is why we always need to check if the dividend is covered by the cash flow. Dividends consumed 58% of the company’s free cash flow last year, which is within a normal range for most dividend-paying organizations.
It is positive to see that QANTM’s intellectual property dividend is covered by both earnings and cash flow, as this is usually a sign that the dividend is sustainable, and a lower payout ratio usually suggests a lower payout ratio. greater margin of safety before the dividend is cut.
Click here to see how much of its profits QANTM Intellectual Property has paid in the past 12 months.
Have profits and dividends increased?
Companies with declining profits are riskier for dividend shareholders. If business goes into recession and the dividend is reduced, the business could experience a sharp drop in value. Readers will then understand why we are concerned to see QANTM Intellectual Property earnings per share fall by 17% per year over the past five years. When earnings per share decrease, the maximum amount of dividends that can be paid also decreases.
Many investors will assess a company’s dividend yield by evaluating how much dividend payments have changed over time. QANTM’s intellectual property has generated an average annual increase of 0.5% per annum in its dividend, based on dividend payments over the past five years.
Is QANTM’s intellectual property an attractive dividend-paying stock, or better, is it left on the shelf? Its earnings per share have fallen dramatically, although it pays less than half of its income and more than half of its cash flow as dividends. Neither payout ratio seems to be an immediate concern, but we are concerned about earnings. It might be interesting to research whether the company is reinvesting in growth projects that may increase its earnings and dividends in the future, but at this point we are not very optimistic about its dividend outlook.
That being said, if dividends aren’t your biggest concern with QANTM’s intellectual property, you should be aware of the other risks this business faces. Concrete example: we have spotted 1 warning sign for QANTM intellectual property you must be aware.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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