Published on 2 Sep 2023 on Simply Wall St. via Yahoo Finance

Why It Might Not Make Sense To Buy XP Power Limited (LON:XPP) For Its Upcoming 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 XP Power Limited (LON:XPP) is about to go ex-dividend in just three 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. In other words, investors can purchase XP Power's shares before the 7th of September in order to be eligible for the dividend, which will be paid on the 12th of October.

The company's next dividend payment will be UK£0.19 per share. Last year, in total, the company distributed UK£0.94 to shareholders. Looking at the last 12 months of distributions, XP Power has a trailing yield of approximately 4.5% on its current stock price of £21.1. 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 investigate whether XP Power can afford its dividend, and if the dividend could grow.

View our latest analysis for XP Power