Yahoo Finanza Three Days Left To Buy Chartwell Retirement Residences (TSE:CSH.UN) Before The Ex-Dividend Date
Chartwell Retirement Residences (TSE:CSH.UN) is about to trade ex-dividend in the next 3 days. This means that investors who purchase shares on or after the 29th of September will not receive the dividend, which will be paid on the 15th of October.
Chartwell Retirement Residences's next dividend payment will be CA$0.051 per share, and in the last 12 months, the company paid a total of CA$0.61 per share. Looking at the last 12 months of distributions, Chartwell Retirement Residences has a trailing yield of approximately 6.2% on its current stock price of CA$9.84. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
View our latest analysis for Chartwell Retirement Residences
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Chartwell Retirement Residences lost money last year, so the fact that it's paying a dividend is certainly disconcerting. There might be a good reason for this, but we'd want to look into it further before getting comfortable. With the recent loss, it's important to check if the business generated enough cash to pay its dividend. If Chartwell Retirement Residences didn't generate enough cash to pay the dividend, then it must have either paid from cash in the bank or by borrowing money, neither of which is sustainable in the long term. It paid out more than half (54%) of its free cash flow in the past year, which is within an average range for most companies.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
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. Chartwell Retirement Residences reported a loss last year, but at least the general trend suggests its income has been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Chartwell Retirement Residences has delivered 1.3% dividend growth per year on average over the past 10 years.
We update our analysis on Chartwell Retirement Residences every 24 hours, so you can always get the latest insights on its financial health, here.
To Sum It Up
Is Chartwell Retirement Residences worth buying for its dividend? We're a bit uncomfortable with it paying a dividend while being loss-making. However, we note that the dividend was covered by cash flow. It's not that we think Chartwell Retirement Residences is a bad company, but these characteristics don't generally lead to outstanding dividend performance.
Although, if you're still interested in Chartwell Retirement Residences and want to know more, you'll find it very useful to know what risks this stock faces. Every company has risks, and we've spotted 2 warning signs for Chartwell Retirement Residences (of which 1 makes us a bit uncomfortable!) you should know about.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. 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.
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