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Think Twice Before Rushing to Buy Aquaticus Real Estate Following Upcoming Dividend Declaration

Aquaticus Real Estate AB (NGM:AQUAT) Ex-Dividend Scheduled in 4 Days

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quaticus Real Estate AB (publ) is set to go ex-dividend within the next four days, with the ex-dividend date typically occurring one business day before the record date. This process involves two full business days of settlement, meaning investors who purchase shares on or after September 27th will not receive the dividend paid on October 3rd. The company's next dividend payment is kr01.00 per share, following a total distribution of kr4.00 to shareholders last year.

    Aquaticus Real Estate has a trailing yield of approximately 5.7% based on its current stock price of kr070.00. However, the sustainability of this dividend is questionable due to the company's lack of profitability and high payout ratio. In fact, Aquaticus Real Estate reported a loss last year, and it paid out only 44% of its free cash flow in the past year.

    The company's earnings have declined significantly, with a loss per share worsening by 164% compared to the previous year. While the dividend payments remain broadly unchanged over the past two years, this could be a sign that the company is paying out a larger percentage of its earnings, which may become unsustainable if earnings continue to fall.

    Considering these factors, we are uncomfortable recommending Aquaticus Real Estate as a suitable dividend stock for long-term investors. However, if you're not concerned about the dividend, it's essential to be aware of the risks involved with this company. We've identified three warning signs, including one that doesn't sit well with us.

Real estate investors consider caution before investing in Aquaticus following dividend announcement.