Reasons to Consider Argent Industrial Limited (JSE:ART) for Its Upcoming Dividend

Dividend Announcement: Argent Industrial Limited will trade ex-dividend in three days, with a dividend payment of R00.67 per share scheduled for December 22, following a total of R1.34 per share paid in the last year, resulting in a trailing yield of 4.1%.

Sustainability of Dividends: The company's payout ratio is a modest 25% of profit and free cash flow, indicating that the dividend is sustainable and backed by both profits and cash flow.

Earnings Growth: Argent Industrial has experienced significant earnings growth of 32% per annum over the past five years, which supports the potential for future dividend increases.

Investment Considerations: While the company has a history of dividend growth, it has cut dividends in the past, and investors should be aware of associated risks before investing.