Published on 27 Apr 2024 on Simply Wall St. via Yahoo Finance

Why You Might Be Interested In Waterco Limited (ASX:WAT) For Its Upcoming Dividend

Readers hoping to buy Waterco Limited (ASX:WAT) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Therefore, if you purchase Waterco's shares on or after the 2nd of May, you won't be eligible to receive the dividend, when it is paid on the 15th of May.

The company's next dividend payment will be AU$0.07 per share. Last year, in total, the company distributed AU$0.14 to shareholders. Looking at the last 12 months of distributions, Waterco has a trailing yield of approximately 2.7% on its current stock price of AU$5.16. 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 check whether the dividend payments are covered, and if earnings are growing.