Regular readers will know we love our dividends at Simply Wall St, which is why it’s exciting to see Bridge Investment Group Holdings Inc. (NYSE: BRDG) is set to trade ex-dividend in the next four days. The ex-dividend date is one business day before the record date, which is the deadline by which shareholders must be present on the books of the company to be eligible for payment of a dividend. It is important to know the ex-dividend date, because any trade in the stock must have settled by the record date. This means that investors who buy shares of Bridge Investment Group Holdings on or after September 1 will not receive the dividend, which will be paid on September 16.
The company’s next dividend payout will be $0.30 per share, following last year when the company paid a total of $0.71 to shareholders. Over the past 12 months of distributions, Bridge Investment Group Holdings has a rolling yield of approximately 4.3% on its current price of $16.54. Dividends are an important source of income for many shareholders, but the health of the company is essential to sustaining those dividends. We therefore need to consider whether Bridge Investment Group Holdings can afford its dividend and whether the dividend could increase.
Check out our latest analysis for Bridge Investment Group Holdings
If a company pays out more dividends than it has earned, the dividend may become unsustainable – a less than ideal situation. Bridge Investment Group Holdings lost money last year, so the fact that it pays a dividend is certainly disconcerting. There could be a good reason for this, but we’d like to explore it further before we get comfortable.
Click here to see the company’s payout ratio, as well as analysts’ estimates of its future dividends.
Have earnings and dividends increased?
Stocks with stable earnings can still be attractive dividend payers, but it’s important to be more conservative in your approach and demand a greater margin of safety when it comes to dividend sustainability. If earnings fall and the company is forced to cut its dividend, investors could see the value of their investment go up in smoke.
We would also like to point out that Bridge Investment Group Holdings has issued a significant number of new shares over the past year. It is difficult to increase dividends per share when a company continues to create new shares.
Unfortunately, Bridge Investment Group Holdings has only been paying a dividend for about a year, so there’s not a lot of history to draw on.
We update our analysis on Bridge Investment Group Holdings every 24 hours, so you can always get the latest information on its financial health here.
Is Bridge Investment Group Holdings an attractive dividend-paying stock, or better left on the shelf? It’s certainly not great to see that it paid out a dividend despite reporting a loss last year. Worse, the overall trend in its earnings has been looking negative lately. Bridge Investment Group Holdings doesn’t seem to have much upside, and we’re not willing to take the risk of owning it for the dividend.
With that in mind, if you don’t mind the low dividend characteristics of Bridge Investment Group Holdings, it’s worth keeping in mind the risks involved in this business. To help you, we found 1 warning sign for Bridge Investment Group Holdings which you should be aware of before investing in their stocks.
If you are looking for good dividend payers, we recommend by consulting our selection of the best dividend-paying stocks.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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