Published on 25 Apr 2024 on Simply Wall St. via Yahoo Finance

Here's Why We're Wary Of Buying Canadian Tire Corporation's (TSE:CTC.A) For Its Upcoming Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Canadian Tire Corporation, Limited (TSE:CTC.A) is about to trade ex-dividend in the next 3 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 as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Thus, you can purchase Canadian Tire Corporation's shares before the 29th of April in order to receive the dividend, which the company will pay on the 1st of June.

The company's upcoming dividend is CA$1.75 a share, following on from the last 12 months, when the company distributed a total of CA$7.00 per share to shareholders. Based on the last year's worth of payments, Canadian Tire Corporation stock has a trailing yield of around 5.1% on the current share price of CA$136.03. 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.