Do These 3 Checks Before Buying Boston Private Financial Holdings, Inc. (NASDAQ:BPFH) For Its Upcoming Dividend

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Regular readers will know that we love our dividends Simply Wall Street, so it's exciting to see Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) will be traded ex dividend for the next three days. Investors can buy shares before August 6 to receive this dividend, which will be paid on August 21. "Data-reactid =" 28 "> Regular readers will know that we love our dividends on Simply Wall Street, so it's exciting to see Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) will be traded ex dividend for the next three days. Investors can buy shares before August 6 to receive this dividend, which will be paid on August 21.

The upcoming dividend from Boston Private Financial Holdings is $ 0.06 per share after a total of $ 0.24 per share has been distributed to shareholders in the past 12 months. Total dividend payments last year show that Boston Private Financial Holdings has a 4.1% lagging return on its current share price of $ 5,885. Dividends are an important source of income for many shareholders, but business health is critical to maintaining these dividends. We have to see whether the dividend is covered by the result and whether it is growing.

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Check out our latest analysis for Boston Private Financial Holdings "data-reactid =" 30 "> Check out our latest analysis for Boston Private Financial Holdings

Dividends are usually paid out of company profits. If a company pays more dividends than it does profits, the dividend may not be sustainable. It distributed 88% of its profit as a dividend last year, which is not inappropriate, but it limits reinvestment in the business and makes the dividend vulnerable to a downturn. We would be concerned about the risk of a drop in earnings.

Generally, if a company pays less dividends than it does profits, it means that its dividend is affordable. The lower the percentage of the profit it pays out, the greater the safety margin for the dividend if the business gets into a downturn.

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Click Here you can see the company's payout ratio and analyst estimates of its future dividends."data-reactid =" 33 "> click Here you can see the company's payout ratio and analyst estimates of its future dividends.

Did income and dividends grow?

Companies with falling earnings are difficult from a dividend perspective. If the business goes into a downturn and the dividend is cut, the value of the company could drop sharply. Boston Private Financial Holdings earnings per share have decreased approximately 8.5% per year for the past five years. When earnings per share decrease, the size of the cake from which dividends can be paid ultimately shrinks.

Another important way to measure a company's dividend prospects is to measure historical dividend growth rates. For the past 10 years, Boston Private Financial Holdings has increased its dividend by an average of 20% a year. This is fascinating, but the combination of growing dividends despite falling profits can usually only be achieved by paying out a larger percentage of the profit. Boston Private Financial Holdings is already paying out 88% of its profit. With earnings falling, we believe it is unlikely that this dividend will rise quickly in the future.

Summarize something

Is it worth buying Boston Private Financial Holdings for its dividend? We're not particularly thrilled that Boston Private Financial Holdings' earnings are declining as the company distributes more than half of its earnings to shareholders as a dividend. These features generally do not result in excellent dividend performance, and investors may not be satisfied with the results of owning this stock for their dividends.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If this is still the case, if you are silent if If you consider Boston Private Financial Holdings to be an investment, it is beneficial to know the risks this stock is exposed to. Every company has risks and we have recognized them 3 warning signs for Boston Private Financial Holdings You should know about it. "data-reactid =" 51 "> If you still consider Boston Private Financial Holdings to be an investment, it is an advantage to know what risks this stock is exposed to. Every company has risks and we have discovered 3 warning signs for Boston Private Financial Holdings You should know it.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "We would not recommend buying only the first dividend stock see, however, here is a list of interesting dividend stocks with a yield of more than 2% and an upcoming dividend."data-reactid =" 56 "> However, we would not recommend buying only the first dividend stock you see a list of interesting dividend stocks with a yield of more than 2% and an upcoming dividend.

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We would like to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.

Do you have any feedback on this item? Concerned about the content? Get in touch directly with us. Alternatively, you can also send an email editorial-team@simplywallst.com."data-reactid =" 57 ">This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We would like to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.

Do you have any feedback on this item? Concerned about the content? Get in touch directly with us. Alternatively, send an email to editorial-team@simplywallst.com.



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