Richmond Mutual Bank Corporation, Inc. (NASDAQ: RMBI) stock is about to go ex-dividend in four days. Typically, the ex-dividend date is one business day prior to the record date, which is the date the company determines which shareholders are eligible to receive the dividend. The ex-dividend date is important because the settlement process takes two full business days. So if you miss that date, you will not enter the company’s books on the record date. This means that investors who purchase shares of Richmond Mutual Bancorporation on or after November 30 will not receive the dividend, which will be paid on December 15.
The company’s upcoming dividend is US$0.10 per share after the previous 12 months when the company paid a total of US$0.40 per share to shareholders. Based on last year’s payouts, Richmond Mutual Bancorporation has a trailing yield of 3.0% at the current share price of $13.15. If you buy this company for its dividend, you should have an idea of whether Richmond Mutual BankCorporation’s dividend is reliable and sustainable. As a result, readers should always investigate whether Richmond Mutual Bancorporation will be able to grow its dividend, or whether the dividend can be reduced.
Check out our latest analysis for Richmond Mutual Bancorporation
Dividends are usually paid out of company income, so if a company pays out more than it earns, the dividend is usually at a higher risk of deduction. Richmond Mutual Bancorporation paid out a comfortable 33% of its profits last year.
When a company pays less dividends than it earns in profits, it generally suggests that its dividends are payable. The lower the percentage of earnings it pays out, the greater the margin of safety for dividends if the company goes into a recession.
Click here to see how much Richmond Mutual Bancorporation has distributed in profits over the past 12 months.
Are earnings and dividends growing?
Companies with strong growth prospects tend to be the best dividend payers because it’s easier to increase dividends when earnings per share improve. If earnings fall significantly, the company may be forced to cut dividends. Fortunately for readers, Richmond Mutual Bancorp’s earnings per share have grown at a 20% annual rate for the past three years.
Most investors judge a company’s dividend prospects primarily by examining its historical dividend growth rate. Since our data began three years ago, Richmond Mutual Bancorporation has increased its dividend by an average of about 26% per year. It is nice to see that earnings per share have been growing steadily for several years now and that the dividend per share is growing along with it.
sum it up
Should Investors Buy Richmond Mutual Bancorporation for Upcoming Dividends? Companies like Richmond Mutual BankCorporation that grow quickly and pay a small percentage of profits usually invest heavily in their business. This is one of the most attractive investment combinations according to this analysis, as it can create substantial value for investors over the long term. In summary, Richmond Mutual Bancorporation has some promise as a dividend stock, and we encourage you to take a closer look.
While it’s tempting to invest in Richmond Mutual BankCorporation just for the dividends, you should always consider the risks involved. Our analysis shows 1 warning sign for Richmond Mutual Bancorporation And before you buy a stock, you should know about it.
A common investment mistake is to buy the first interesting stock you see. Here you will find Complete list of high yield dividend stocks.
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This Simply Wall St article is general in nature. We only comment based on historical data and analyst forecasts using an unbiased methodology and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or your financial situation. We strive to provide you with long-term focused analytics driven by fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or quality material. Simply Wall Street has no position in any of the listed stocks.
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