There's A Lot To Like About Heidelberg Materials' (ETR:HEI) Upcoming €3.60 Dividend

It looks like Heidelberg Materials AG (ETR:HEI) is about to go ex-dividend in the next two days. The ex-dividend date is commonly two business days 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 because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Thus, you can purchase Heidelberg Materials' shares before the 14th of May in order to receive the dividend, which the company will pay on the 19th of May. The company's next dividend payment will be €3.60 per share, on the back of last year when the company paid a total of €3.60 to shareholders. Based on the last year's worth of payments, Heidelberg Materials has a trailing yield of 2.0% on the current stock price of €183.80. If you buy this business for its dividend, you should have an idea of whether Heidelberg Materials's dividend is reliable and sustainable. As a result, readers should always check whether Heidelberg Materials has been able to grow its dividends, or if the dividend might be cut. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. That's why it's good to see Heidelberg Materials paying out a modest 32% of its earnings. A useful secondary check can be to evaluate whether Heidelberg Materials generated enough free cash flow to afford its dividend. It distributed 32% of its free cash flow as dividends, a comfortable payout level for most companies. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Check out our latest analysis for Heidelberg Materials Click here to see the company's payout ratio, plus analyst estimates of its future dividends. XTRA:HEI Historic Dividend May 11th 2026 Have Earnings And Dividends Been Growing? Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see Heidelberg Materials's earnings have been skyrocketing, up 20% per annum for the past five years. Heidelberg Materials is paying out less than half its earnings and cash flow, while simultaneously growing earnings per share at a rapid clip. Companies with growing earnings and low payout ratios are often the best long-term dividend stocks, as the company can both grow its earnings and increase the percentage of earnings that it pays out, essentially multiplying the dividend. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past 10 years, Heidelberg Materials has increased its dividend at approximately 11% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years. Final Takeaway From a dividend perspective, should investors buy or avoid Heidelberg Materials? It's great that Heidelberg Materials is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. It's disappointing to see the dividend has been cut at least once in the past, but as things stand now, the low payout ratio suggests a conservative approach to dividends, which we like. Heidelberg Materials looks solid on this analysis overall, and we'd definitely consider investigating it more closely. While it's tempting to invest in Heidelberg Materials for the dividends alone, you should always be mindful of the risks involved. In terms of investment risks, we've identified 1 warning sign with Heidelberg Materials and understanding them should be part of your investment process. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Valuation is complex, but we're here to simplify it.Discover if Heidelberg Materials might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free Analysis