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

Do These 3 Checks Before Buying American Software, Inc. (NASDAQ:AMSW.A) For Its Upcoming Dividend

Readers hoping to buy American Software, Inc. (NASDAQ:AMSW.A) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. 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 of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Thus, you can purchase American Software's shares before the 2nd of May in order to receive the dividend, which the company will pay on the 17th of May.

The company's next dividend payment will be US$0.11 per share, on the back of last year when the company paid a total of US$0.44 to shareholders. Last year's total dividend payments show that American Software has a trailing yield of 4.3% on the current share price of US$10.22. If you buy this business for its dividend, you should have an idea of whether American Software's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.