Tamarack Valley Energy Ltd. (TSE:TVE) stock is about to trade ex-dividend in 4 days. Typically, the ex-dividend date is one business day before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Meaning, you will need to purchase Tamarack Valley Energy’s shares before the 29th of August to receive the dividend, which will be paid on the 15th of September.
The company’s next dividend payment will be CA$0.01275 per share, on the back of last year when the company paid a total of CA$0.15 to shareholders. Last year’s total dividend payments show that Tamarack Valley Energy has a trailing yield of 2.8% on the current share price of CA$5.49. If you buy this business for its dividend, you should have an idea of whether Tamarack Valley Energy’s dividend is reliable and sustainable. So we need to investigate whether Tamarack Valley Energy can afford its dividend, and if the dividend could grow.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Tamarack Valley Energy paid out a comfortable 32% of its profit last year. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. The good news is it paid out just 20% of its free cash flow in the last year.
It’s encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don’t drop precipitously.
Check out our latest analysis for Tamarack Valley Energy
Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
TSX:TVE Historic Dividend August 24th 2025
Businesses with strong growth prospects usually make the best dividend payers, because it’s easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That’s why it’s comforting to see Tamarack Valley Energy’s earnings have been skyrocketing, up 32% per annum for the past five years. Earnings per share have been growing very quickly, and the company is paying out a relatively low percentage of its profit and cash flow. This is a very favourable combination that can often lead to the dividend multiplying over the long term, if earnings grow and the company pays out a higher percentage of its earnings.
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