<!-- HTML_TAG_START -->NasdaqGS:FULT Historic Dividend December 21st 2024<!-- HTML_TAG_END -->
Readers hoping to buy Fulton Financial Corporation (NASDAQ:FULT) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company’s books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase Fulton Financial’s shares before the 31st of December in order to be eligible for the dividend, which will be paid on the 15th of January.
The company’s upcoming dividend is US$0.18 a share, following on from the last 12 months, when the company distributed a total of US$0.68 per share to shareholders. Calculating the last year’s worth of payments shows that Fulton Financial has a trailing yield of 3.4% on the current share price of US$19.86. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.
See our latest analysis for Fulton Financial
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. That’s why it’s good to see Fulton Financial paying out a modest 42% of its earnings.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it’s a relief to see Fulton Financial earnings per share are up 4.9% per annum over the last five years.
Fulton Financial also issued more than 5% of its market cap in new stock during the past year, which we feel is likely to hurt its dividend prospects in the long run. It’s hard to grow dividends per share when a company keeps creating new shares.
