Published on 26 Jan 2024 on Simply Wall St. via Yahoo Finance

Here's Why We're Wary Of Buying Donegal Group's (NASDAQ:DGIC.A) For Its Upcoming Dividend

It looks like Donegal Group Inc. (NASDAQ:DGIC.A) is about to go ex-dividend in the next 3 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. This means that investors who purchase Donegal Group's shares on or after the 31st of January will not receive the dividend, which will be paid on the 15th of February.

The company's next dividend payment will be US$0.17 per share. Last year, in total, the company distributed US$0.68 to shareholders. Based on the last year's worth of payments, Donegal Group has a trailing yield of 4.6% on the current stock price of US$14.91. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

Check out our latest analysis for Donegal Group