Village Super Market, Inc. (NASDAQ:VLGE.A) About to Pay US$0.25 Per Share Dividend

Village Super Market, Inc. stock is set to go ex-dividend in four days. The ex-dividend date, occurring one business day before the record date, signifies when the company identifies shareholders entitled to receive dividends.

The settlement involves two full business days, making the ex-dividend date crucial. Missing this date means shareholders won’t appear on the company’s books on the record date.

Hence, purchasing Village Super Market’s shares on or after April 3rd disqualifies one from receiving the dividend, paid on April 25th. (Credits: Village Super Market)

The upcoming dividend is US$0.25 per share, continuing the trend from the past 12 months when the company disbursed a total of US$1.00 per share.

Investors eyeing this stock for its dividend should assess if Village Super Market’s dividend is reliable and sustainable. Hence, it’s prudent to verify if Village Super Market has consistently grown its dividends or faces potential cuts.

Dividends are typically funded from company profits, making a company vulnerable to dividend cuts if it pays out more than it earns. Hence, Village Super Market’s modest payout ratio of 28% of its earnings is reassuring.

Reflecting on the trailing 12 months, Village Super Market boasts a yield of approximately 3.5% based on its current stock price of US$28.61. (Credits: Village Super Market)

Additionally, evaluating whether the company generated enough free cash flow to cover the dividend is a worthwhile secondary check.

Village Super Market’s dividend payments represented only 26% of the free cash flow it generated, indicating a comfortable payout ratio.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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