Published on 11 Feb 2024 on Simply Wall St. via Yahoo Finance

Here's Why We're Wary Of Buying Deluxe's (NYSE:DLX) For Its Upcoming Dividend

Deluxe Corporation (NYSE:DLX) stock is about to trade ex-dividend in 4 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. 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. Therefore, if you purchase Deluxe's shares on or after the 16th of February, you won't be eligible to receive the dividend, when it is paid on the 4th of March.

The company's next dividend payment will be US$0.30 per share. Last year, in total, the company distributed US$1.20 to shareholders. Calculating the last year's worth of payments shows that Deluxe has a trailing yield of 6.0% on the current share price of US$20.16. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Deluxe can afford its dividend, and if the dividend could grow.

Check out our latest analysis for Deluxe