Don't Race Out To Buy Alerus Financial Corporation (NASDAQ:ALRS) Just Because It's Going Ex-Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Alerus Financial Corporation (NASDAQ:ALRS) is about to go ex-dividend in just four days. The company's next dividend payment will be US$0.20 per share, representing a 2.5% increase from the previous payout. However, this increase is largely offset by declining earnings per share, which have fallen at approximately 16% a year over the previous five years.
- Alerus Financial's reliance on high dividend payouts could become unsustainable if the company fails to restore its earnings growth, highlighting the importance of considering both dividend yield and payout ratio when evaluating a stock.
- Will Alerus Financial's management be able to balance the need for dividend payments with the imperative to invest in growth initiatives, or will the pressure to maintain dividend continuity compromise the company's long-term prospects?