Regular readers will know they love dividends at Simply Wall St. Therefore, Texas Community Bancshares, Inc. It’s exciting to see (NASDAQ: TCBS) trying to trade Ex-Dividend in the next four days. The date of the original delivery is one day before the company’s record date. This is the date when the company determines which shareholders are entitled to receive dividends. The ex-didividend date is an important date to recognize, as it can mean a late settlement where purchases of stocks created after this date are not shown on the record date. Therefore, by March 10th, you can purchase shares in Texas Community Bancshares by March 10th.
The company’s upcoming dividend is USD 0.04 per share after the Company has distributed a total of US$0.16 to shareholders for the past 12 months. Based on last year’s payments, Texas Community BankShares shares have a subsequent yield of around 1.0% at its current stock price of USD 16.5001. Dividends are the major contributors to long-term holder investment returns, but only if dividends continue to be paid. You need to see if dividends are covered by revenue and if they are growing.
Check out the latest analysis of Bancshares Texas Community
Dividends are usually paid out of the company’s profits, so if you pay more than the company has acquired, the dividends are usually at a higher risk of being reduced. The fact that it pays dividends is certainly bewildering as Texas Community Bankshares lost money last year. There may be good reasons for this, but I’d like to look into it further before it gets comfortable. Texas Community Bank Share has paid dividends despite reporting negative free cash flow in the past 12 months. This could be due to heavy investments in the business, but this is still optimal from a dividend sustainability perspective.
Click here to see what profit Texas Community Bank Share has paid over the past 12 months.
Are revenue and dividends increasing?
Companies with reduced revenues are difficult from a dividend perspective. If revenues drop sufficiently, the company could be forced to cut its dividends. Texas Community BankShares was unprofitable last year, and unfortunately, the general trend suggests that revenue has declined over the past five years, making it a question of whether dividends are completely sustainable.
Many investors assess a company’s dividend performance by assessing how much dividend payments have changed over time. Over the past two years, Texas Community BankShares has increased its dividend by about 41% per year, on average.
Don’t forget that you can always get a snapshot of your financial health from Texas Community BankShares by checking out our financial health visualizations here.
Summary
Has Texas community Bancshares got what it takes to maintain dividend payments? It is difficult to overcome the idea that Texas Community Bank Share will pay dividends, especially when general trends in revenue also appear to be negative. Texas Community Bank Share doesn’t seem to have much of it and is not inclined to take risks in owning it for dividends.
That being said, if you are considering Texas community bank share as an investment, you will find it beneficial to know the risks this stock faces. To do this, you need to learn about two warning signs you’ve discovered in Texas Community Bank Share (including one).
If you are in the market of strong dividend payers, we recommend checking out the selection of top-class dividend stocks.
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Discover whether Texas community bank share is underestimated or overvalued in a detailed analysis characterized by fair value estimates, potential risks, dividends, insider trading, and its financial position.
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