Is It Smart To Buy WVS Financial Corp. (NASDAQ:WVFC) Before It Goes Ex-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 WVS Financial Corp. (NASDAQ: WVFC) will be traded ex dividend for the next three days. Ex-dividend means that investors who buy the stock on or after August 7 will not receive this dividend, which will be paid on August 20. "Data-reactid =" 28 "> Regular readers will know that we love our dividends on Simply Wall Street, which is why it's exciting to see WVS Financial Corp. (NASDAQ: WVFC) will be traded ex dividend for the next three days. Ex-dividend means that investors who buy the stock on or after August 7 will not receive this dividend, which will be paid on August 20.

WVS Financial's next dividend payment is $ 0.10 per share. The company has paid a total of $ 0.40 per share for the past 12 months. Total dividend payments over the past year show that WVS Financial has a lagging return of 2.9% compared to the current share price of $ 13.6757. Dividends make a significant contribution to the return on investment of long-term holders, but only if the dividend continues to be paid. So we have to check whether the dividend payments are covered and whether profits are increasing.

<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 WVS Financial "data-reactid =" 30 "> Check out our latest analysis for WVS Financial

If a company pays more dividends than it deserves, the dividend can no longer be sustainable – hardly an ideal situation. WVS Financial paid a comfortable 28% of its profit last year.

Companies that pay less dividends than profit generally have more sustainable dividends. The lower the payout ratio, the more leeway the company has before it can be forced to lower the dividend.

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Click Here's how much of his earnings WVS Financial has paid out over the past 12 months."data-reactid =" 33 "> click Here's how much of his earnings WVS Financial has paid out over the past 12 months.

Did income and dividends grow?

Companies with steadily growing earnings per share generally get the best dividend stocks because it is usually easier for them to increase dividends per share. If the result drops far enough, the company may be forced to cut its dividend. For this reason, we are pleased that earnings per share of WVS Financial have increased by 15% per year in the past five years.

Most investors assess a company's dividend prospects primarily based on historical dividend growth rates. WVS Financial's dividend payments per share have dropped an average of 4.6% per year over the past 10 years, which is not particularly inspiring. WVS Financial is a rare case where dividends have dropped while earnings per share have improved. It is unusual to see and could indicate unstable conditions in the core business, or less often an increased focus on reinvesting profits.

Final takeaway

Does WVS Financial have what it takes to maintain its dividend payments? When companies grow rapidly and keep much of the profits in the company, it is usually a sign that reinvesting profits creates more value than paying dividends to shareholders. This is one of the most attractive investment combinations in this analysis as it can create significant value for investors in the long term. In summary, WVS Financial appears to be promising as a dividend stock and we recommend taking a closer look at it.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While WVS Financial looks good from a dividend perspective, it is always worthwhile to be up to date on the risks associated with this stock. For example, we found out 2 warning signs for WVS Financial We recommend that you consider this before investing in the business. "data-reactid =" 51 "> Although WVS Financial looks good from a dividend perspective, it is always worth being up to date on the risks associated with this stock. For example, we found 2 warning signs for WVS Financial We recommend that you consider this before investing in the business.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "A common investment mistake is buying the first interesting stock you see . Here you will find a list of promising dividend stocks with a yield of more than 2% and an upcoming dividend."data-reactid =" 52 "> A common investment mistake is buying the first interesting stock you see, here you can find it a list of promising 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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