Some investors rely on dividends to enhance their wealth, and if you’re one of those dividend hunters, you might be interested to learn that Overseas Shipholding Group, Inc. (NYSE:OSG) is going to go ex-dividend in just three days. The ex-dividend date is one day before the record date, which is the day on which shareholders must be recorded on the company’s records in order to collect a dividend. The ex-dividend date is significant because any transaction on a stock must have been completed before the record date in order to be eligible for dividends. Thus, you can buy Overseas Shipholding Group shares before the 27th of March to get the dividend, which will be paid on the 11th of April.
The company’s future dividend is US$0.06 per share, which follows the distribution of US$0.06 per share to shareholders during the previous 12 months. Based on last year’s total dividend payments, Overseas Shipholding Group has a trailing yield of 3.8% on its current share price of US$6.29. Dividends contribute significantly to long-term investment returns, but only if they are paid on a regular basis. As a result, readers should always check to see if Overseas Shipholding Group’s dividends have increased or decreased.
Another important metric for assessing a company’s dividend prospects is its historical rate of dividend increase. Over the last eight years, Overseas Shipholding Group’s dividend payouts per share have fallen by an average of 23% every year, which is unimpressive. It is rare to witness an increase in earnings per share when dividends per share have declined. We’d hope that’s because the company is reinvesting extensively in its operations, but it might also indicate that business is unpredictable.
Should investors purchase Overseas Shipholding Group for its forthcoming dividend? Companies that are fast developing and paying out a small portion of their revenues typically maintain the profits to reinvest in the firm. This method can provide considerable value to shareholders in the long run, as long as it is implemented without issuing too many additional shares. In conclusion, Overseas Shipholding Group looks to have some dividend potential, and we recommend having a deeper look at it.