Booz Allen (NYSE:BAH) Hamilton Holding Corporation (NYSE:BAH) is nearing its ex-dividend date, which is set for four days from today. This significant date implies that stock purchases made after this point may not be included on the record date, impacting the shareholders' dividend rights.
The upcoming dividend, scheduled for December 4th, is set at $0.47 per share. This follows last year's total payout of $1.88 per share, leading to a trailing yield of 1.5% based on the current share price of $124.79.
Shareholders who acquire shares after November 14th will not be eligible for this next dividend. This rule underscores the importance of the ex-dividend date in a company's financial calendar as it determines the investors who are entitled to receive dividends.
However, it's worth noting that Booz Allen distributed a significant portion of its earnings and free cash flow as dividends in the previous year. The firm allocated 83% of its profits and an alarming 134% of its free cash flow towards dividends, potentially threatening its financial stability and capacity for reinvestment.
With these payout ratios, investors might need to scrutinize Booz Allen's dividend policy closely, considering the potential risk to the company's financial health and future growth prospects.
Only those who hold shares before November 14th will be entitled to receive the forthcoming dividend on December 4th. After this ex-dividend date, new shareholders will have to wait until the next dividend period to receive payouts.
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