There’s A Lot To Like About PARKEN Sport & Entertainment’s (CPH:PARKEN) Upcoming kr.10.00 Dividend

Some investors rely on dividends to grow their wealth, and if you’re one of those dividend trackers, you might be interested to know PARKING Sport & Entertainment A/S (CPH:PARKEN) is close to going ex-dividend in just 3 days. The ex-dividend date is one business day prior to a company’s record date when the company determines which shareholders are entitled to receive a dividend. The ex-dividend date matters because whenever a stock is bought or sold, it takes at least two business days for the trade to settle. This means you must buy PARKEN Sport & Entertainment shares before April 24th to receive the dividend, which will be paid on April 26th.

The company’s forthcoming dividend is 10.00 kr. per share, based on the last 12 months, when the company totaled 10.00 kr. distributed per share to the shareholders. Based on last year’s payments, PARKEN Sport & Entertainment has a trailing yield of 9.1% on the current share price of 110 DKK. If you are buying this company for its dividend, you should have an idea whether PARKEN Sport & Entertainment’s dividend is reliable and sustainable. So we need to examine whether PARKEN Sport & Entertainment can afford its dividend and whether the dividend could grow.

Check out our latest analysis for PARKEN Sport & Entertainment

Dividends are usually paid out of company profits. If a company pays more dividends than it makes in profits, the dividend might not be sustainable. PARKEN Sport & Entertainment paid out 51% of its profits to investors last year, a normal payout level for most companies. PARKEN Sport & Entertainment paid a dividend even though the company reported negative free cash flow last year. That’s typically a bad combination and, if it were more than a one-time thing, unsustainable.

Click here to see how much of its winnings PARKEN Sport & Entertainment has paid out over the last 12 months.

Have profits and dividends grown?

Companies with strong growth prospects tend to be the best dividend payers because it’s easier to grow dividends when earnings per share improve. Investors love dividends. So when earnings are falling and the dividend is being cut, expect a stock to sell off at the same time. Lucky for readers, PARKEN Sport & Entertainment’s earnings per share have grown 16% annually over the past five years.

Many investors judge a company’s dividend performance by evaluating how much dividend payments have changed over time. The dividend payments of PARKEN Sport & Entertainment are practically unchanged at the level of six years ago.

Last snack

Is PARKEN Sport & Entertainment an Attractive Dividend Stock or Better On the Shelf? PARKEN Sport & Entertainment has an acceptable payout ratio and its earnings per share have been improving at a reasonable pace. We think this is a pretty attractive combination and would be interested in exploring PARKEN Sports & Entertainment in more detail.

With that in mind, a crucial part of doing thorough stock research is being aware of the risks the stock currently faces. You should find out more about this 3 warning signs we have sighted with PARKEN Sport & Entertainment (including 2 of importance).

A common investing mistake is buying the first interesting stock you see. Here you can find a complete list of high-yielding dividend stocks.

Do you have any feedback about this article? Concerned about the content? Get in touch directly with us. Alternatively, send an email to the editorial team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.