Published on 6 Apr 2023 on Simply Wall St. via Yahoo Finance

Is It Smart To Buy Alvopetro Energy Ltd. (CVE:ALV) Before It Goes Ex-Dividend?

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Alvopetro Energy Ltd. (CVE:ALV) is about to go ex-dividend in just 4 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. 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. Accordingly, Alvopetro Energy investors that purchase the stock on or after the 30th of March will not receive the dividend, which will be paid on the 14th of April.

The company's upcoming dividend is US$0.14 a share, following on from the last 12 months, when the company distributed a total of US$0.48 per share to shareholders. Looking at the last 12 months of distributions, Alvopetro Energy has a trailing yield of approximately 9.5% on its current stock price of CA$6.96. 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! So we need to investigate whether Alvopetro Energy can afford its dividend, and if the dividend could grow.

See our latest analysis for Alvopetro Energy