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 Kursaal Bern AG (BRN:KSBE) is about to go ex-dividend in just three days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company’s books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company’s books on the record date. In other words, investors can purchase Kursaal Bern’s shares before the 9th of June in order to be eligible for the dividend, which will be paid on the 12th of June.
The company’s next dividend payment will be CHF022.00 per share, on the back of last year when the company paid a total of CHF22.00 to shareholders. Last year’s total dividend payments show that Kursaal Bern has a trailing yield of 5.5% on the current share price of CHF0400.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether Kursaal Bern can afford its dividend, and if the dividend could grow.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable – hardly an ideal situation. Kursaal Bern paid out 73% of its earnings to investors last year, a normal payout level for most businesses. A useful secondary check can be to evaluate whether Kursaal Bern generated enough free cash flow to afford its dividend. Fortunately, it paid out only 34% of its free cash flow in the past 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.
See our latest analysis for Kursaal Bern
Click here to see how much of its profit Kursaal Bern paid out over the last 12 months.
BRSE:KSBE Historic Dividend June 5th 2026 Have Earnings And Dividends Been Growing?
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. With that in mind, it’s good to see earnings have grown 20% on last year. Kursaal Bern is paying out a bit over half its earnings, which suggests the company is striking a balance between reinvesting in growth, and paying dividends. This is a reasonable combination that could hint at some further dividend increases in the future.
One year is a very short time frame in the pantheon of investing, so we wouldn’t get too hung up on these numbers.
Given that Kursaal Bern has only been paying a dividend for a year, there’s not much of a past history to draw insight from.
To Sum It Up
Has Kursaal Bern got what it takes to maintain its dividend payments? We like Kursaal Bern’s growing earnings per share and the fact that – while its payout ratio is around average – it paid out a lower percentage of its cash flow. Kursaal Bern looks solid on this analysis overall, and we’d definitely consider investigating it more closely.
With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. For example, Kursaal Bern has 2 warning signs (and 1 which shouldn’t be ignored) we think you should know about.
If you’re in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.