AMAG Austria Metall AG (VIE:AMAG) stock is about to trade ex-dividend in three days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company’s books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company’s books on the record date. Meaning, you will need to purchase AMAG Austria Metall’s shares before the 21st of April to receive the dividend, which will be paid on the 23rd of April.
The company’s next dividend payment will be €0.75 per share, and in the last 12 months, the company paid a total of €0.75 per share. Based on the last year’s worth of payments, AMAG Austria Metall has a trailing yield of 2.5% on the current stock price of €30.10. If you buy this business for its dividend, you should have an idea of whether AMAG Austria Metall’s dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it’s growing.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Its dividend payout ratio is 78% of profit, which means the company is paying out a majority of its earnings. The relatively limited profit reinvestment could slow the rate of future earnings growth. We’d be worried about the risk of a drop in earnings. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Thankfully its dividend payments took up just 37% of the free cash flow it generated, which is a comfortable payout ratio.
It’s encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don’t drop precipitously.
Check out our latest analysis for AMAG Austria Metall
Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
WBAG:AMAG Historic Dividend April 17th 2026 Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it’s easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. That’s why it’s comforting to see AMAG Austria Metall’s earnings have been skyrocketing, up 25% per annum for the past five years. Earnings per share are growing at a rapid rate, yet the company is paying out more than three-quarters of its earnings.
Another key way to measure a company’s dividend prospects is by measuring its historical rate of dividend growth. AMAG Austria Metall’s dividend payments per share have declined at 4.6% per year on average over the past 10 years, which is uninspiring. It’s unusual to see earnings per share increasing at the same time as dividends per share have been in decline. We’d hope it’s because the company is reinvesting heavily in its business, but it could also suggest business is lumpy.
To Sum It Up
Should investors buy AMAG Austria Metall for the upcoming dividend? We like AMAG Austria Metall’s growing earnings per share and the fact that – while its payout ratio is around average – it paid out a lower percentage of its cash flow. It’s a promising combination that should mark this company worthy of closer attention.
So while AMAG Austria Metall looks good from a dividend perspective, it’s always worthwhile being up to date with the risks involved in this stock. For example, we’ve found 2 warning signs for AMAG Austria Metall that we recommend you consider before investing in the business.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.