RM plc (LON:RM.) stock is about to trade ex-dividend in four days. The ex-dividend date is one business day 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 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. This means that investors who purchase RM’s shares on or after the 22nd of July will not receive the dividend, which will be paid on the 27th of August.
The company’s next dividend payment will be UK£0.017 per share. Last year, in total, the company distributed UK£0.034 to shareholders. Based on the last year’s worth of payments, RM stock has a trailing yield of around 1.4% on the current share price of £2.515. We love seeing companies pay a dividend, but it’s also important to be sure that laying the golden eggs isn’t going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it’s growing.
