Should Income Investors Look At Koninklijke Vopak N.V. (AMS:VPK) Before Its Ex-Dividend?
April 20, 2025
Koninklijke Vopak N.V. (AMS:VPK) is about to trade ex-dividend in the next four 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Thus, you can purchase Koninklijke Vopak’s shares before the 25th of April in order to receive the dividend, which the company will pay on the 2nd of May.
The company’s upcoming dividend is €1.60 a share, following on from the last 12 months, when the company distributed a total of €1.60 per share to shareholders. Calculating the last year’s worth of payments shows that Koninklijke Vopak has a trailing yield of 4.1% on the current share price of €38.74. If you buy this business for its dividend, you should have an idea of whether Koninklijke Vopak’s dividend is reliable and sustainable. As a result, readers should always check whether Koninklijke Vopak has been able to grow its dividends, or if the dividend might be cut.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable – hardly an ideal situation. Koninklijke Vopak is paying out an acceptable 51% of its profit, a common payout level among most companies. A useful secondary check can be to evaluate whether Koninklijke Vopak generated enough free cash flow to afford its dividend. Thankfully its dividend payments took up just 32% of the free cash flow it generated, which is a comfortable payout ratio.
It’s positive to see that Koninklijke Vopak’s dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
View our latest analysis for Koninklijke Vopak
Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
When earnings decline, dividend companies become much harder to analyse and own safely. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we’re discomforted by Koninklijke Vopak’s 6.4% per annum decline in earnings in the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend.
The main way most investors will assess a company’s dividend prospects is by checking the historical rate of dividend growth. In the past 10 years, Koninklijke Vopak has increased its dividend at approximately 5.9% a year on average. That’s interesting, but the combination of a growing dividend despite declining earnings can typically only be achieved by paying out more of the company’s profits. This can be valuable for shareholders, but it can’t go on forever.
Has Koninklijke Vopak got what it takes to maintain its dividend payments? We’re not enthused by the declining earnings per share, although at least the company’s payout ratio is within a reasonable range, meaning it may not be at imminent risk of a dividend cut. In summary, it’s hard to get excited about Koninklijke Vopak from a dividend perspective.
So if you want to do more digging on Koninklijke Vopak, you’ll find it worthwhile knowing the risks that this stock faces. Our analysis shows 1 warning sign for Koninklijke Vopak and you should be aware of this before buying any shares.
If you’re in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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