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

Don't Buy Power Integrations, Inc. (NASDAQ:POWI) For Its Next Dividend Without Doing These Checks

Power Integrations, Inc. (NASDAQ:POWI) stock is about to trade ex-dividend in 4 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. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. In other words, investors can purchase Power Integrations' shares before the 31st of May in order to be eligible for the dividend, which will be paid on the 28th of June.

The company's next dividend payment will be US$0.20 per share, and in the last 12 months, the company paid a total of US$0.80 per share. Based on the last year's worth of payments, Power Integrations stock has a trailing yield of around 1.0% on the current share price of US$77.19. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.