The Scottish Investment Trust PLC (LON: SCIN) has passed our checks and is about to pay a dividend of £ 0.058 in the UK
Some investors rely on dividends to grow their wealth, and if you’re one of those dividend sleuths, you might be intrigued to know that The Scottish Investment Trust PLC (LON: SCIN) is set to be ex-dividend in just three days. Typically, the ex-dividend date is one business day prior to the record date which is the date a company determines which shareholders are eligible to receive a dividend. The ex-dividend date is important because any share transaction must have been settled before the registration date to be eligible for a dividend. Therefore, if you buy shares of Scottish Investment Trust on or after September 30, you will not be able to receive the dividend when it is paid on November 1.
The company’s next dividend payment will be £ 0.058 per share, compared to last year when the company paid a total of £ 0.23 to shareholders. Last year’s total dividend payouts show Scottish Investment Trust has a return of 3.1% on the current share price of £ 7.43. Dividends are a major contributor to returns on investment for long-term holders, but only if the dividend continues to be paid. Accordingly, readers should always check whether Scottish Investment Trust has been able to increase its dividends or whether the dividend could be reduced.
See our latest review for Scottish Investment Trust
Dividends are generally paid out of company profits. If a company pays more dividends than it made a profit, then the dividend could be unsustainable. Scottish Investment Trust paid a comfortable 41% of its profits last year.
Companies that pay less dividends than they earn profits generally have more sustainable dividends. The lower the payout ratio, the more leeway the company has before being forced to reduce the dividend.
Click here to see how much of its Profits Scottish Investment Trust has paid in the past 12 months.
Have profits and dividends increased?
Companies with consistently rising earnings per share usually make the best dividend-paying stocks because they generally find it easier to raise dividends per share. If profits fall enough, the company could be forced to cut its dividend. Luckily for readers, Scottish Investment Trust’s earnings per share have grown 19% per year over the past five years.
Many investors will assess a company’s dividend yield by evaluating how much dividend payments have changed over time. Over the past 10 years, Scottish Investment Trust has increased its dividend by around 8.7% per year on average. It is encouraging to see the company raising its dividends as profits rise, suggesting at least some corporate interest in rewarding shareholders.
Is the Scottish Investment Trust an attractive dividend-paying stock, or rather left on the shelf? Typically, companies that grow rapidly and pay a small fraction of the profits keep the profits to reinvest in the business. This is one of the most attractive investment combinations for this analysis as it can create substantial value for long-term investors. Overall, Scottish Investment Trust appears to be a promising dividend-paying stock in this analysis, and we think it would be worth studying further.
In light of this, although Scottish Investment Trust has an attractive dividend, it is worth knowing the risks involved in this security. For example – Scottish Investment Trust has 1 warning sign we think you should be aware.
A common investment mistake is to buy the first interesting stock you see. Here you will find a list of promising dividend paying stocks with a yield above 2% and an upcoming dividend.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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