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Bayerische Motoren Werke Aktiengesellschaft (ETR:BMW) Looks Like A Good Stock, And It’s Going Ex-Dividend Soon

Regular readers will know that we love our dividends at Simply Wall St, which is why it’s exciting to see Bayerische Motoren Werke Aktiengesellschaft (ETR:BMW) is about to trade ex-dividend in the next 4 days. The ex-dividend date is usually set to be one business day 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, Bayerische Motoren Werke investors that purchase the stock on or after the 12th of May will not receive the dividend, which will be paid on the 16th of May.

The company’s next dividend payment will be €8.50 per share, on the back of last year when the company paid a total of €8.50 to shareholders. Based on the last year’s worth of payments, Bayerische Motoren Werke stock has a trailing yield of around 7.9% on the current share price of €107.54. We love seeing companies pay a dividend, but it’s also important to be sure that laying the golden eggs isn’t going to kill our golden goose! As a result, readers should always check whether Bayerische Motoren Werke has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Bayerische Motoren Werke

If a company pays out more in dividends than it earns, then the dividend might become unsustainable – hardly an ideal situation. Bayerische Motoren Werke paid a comfortable 49% 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 that it paid out just 22% 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.

Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.

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 a business enters a downturn and the dividend is cut, the company can see its value fall precipitously. With that in mind, we’re encouraged by the steady growth at Bayerische Motoren Werke, with earnings per share up 6.0% on average over the last five years. Management has been reinvested more than half of the company’s earnings within the business, and the company has been able to grow earnings with this retained capital. Organizations that reinvest heavily in themselves typically get stronger over time, which can bring attractive benefits such as stronger earnings and dividends.

Another key way to measure a company’s dividend prospects is by measuring its historical rate of dividend growth. Bayerische Motoren Werke has delivered 14% dividend growth per year on average over the past 10 years. It’s encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

The Bottom Line

Has Bayerische Motoren Werke got what it takes to maintain its dividend payments? Earnings per share have been growing moderately, and Bayerische Motoren Werke is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and Bayerische Motoren Werke is halfway there. It’s a promising combination that should mark this company worthy of closer attention.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. For example, we’ve found 4 warning signs for Bayerische Motoren Werke (1 is a bit unpleasant!) that deserves your attention before investing in the shares.

Generally, we wouldn’t recommend just buying the first dividend stock you see. Here’s a curated list of interesting stocks that are strong dividend payers.

Have feedback on this article? Concerned about the content? get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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Swedbank Q1 Profits Beats Expectations on Better Deposit Margins

STOCKHOLM (Reuters) -Swedish bank Swedbank reported first-quarter net profit above market expectations on Thursday and said higher deposit margins had boosted results, although credit impairments also rose.

The rivals of Handelsbanken, SEB and Nordea said net profit totaled 7.56 billion Swedish crowns ($733.24 million) versus a year-ago 4.48 billion, topping a mean forecast of 6.62 billion, according to analyst estimates provided by the company.

CEO Jens Henriksson said Swedbank had a strong start to the year.

“The driving factor was higher net interest income, which strengthened thanks to higher deposit margins,” he told a news conference.

Higher interest rates have meant that Swedish banks have increased margins on their loan business. The Riksbank raised interest rates to 3.5% on Wednesday, up from zero just over a year ago, and said a further hike was likely.

Swedbank, Sweden’s biggest mortgage bank, said its net interest income, which includes revenue from mortgages, rose by 77% to 11.94 billion from a year-ago 6.76 billion, above the 11.37 billion expected by analysts.

Commission income rose to 3.66 billion crowns from a year ago 3.55 billion, above the mean forecast of 3.48 billion, while the bank made a profit on financial transactions, including hedging instruments, of 916 million compared to 139 million a year earlier.

Swedbank said its credit impairments rose to 777 million crowns from 158 million a year ago, above the 386 million seen by analysts.

(Reporting by Johan Ahlander, editing by Terje Solsvik)

EHR Threats? – Rickard & Associates

A recent warning highlights that electronic health records (EHRs) are a top target of cybercriminals.

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The Health Sector Cybersecurity Coordination Center (HC3) issued a warning to healthcare entities regarding EHR vulnerabilities and protections.

Protected health information (PHI) continues to hold its value on the dark web and is a constant target of cybercriminals.

With the recent growth of telehealth and healthcare technology, we have seen a large increase in cybercrime and breaches attempting to benefit from security lapses.

How can you protect your patients’ PHI and your practice?

It is essential to utilize best practices when it comes to healthcare privacy and security.

Make sure that you are up to date with all security patches and regularly change your passwords.

Ensure that your staff regularly changes all passwords for all devices that can access patient data. Also make sure that no passwords are visible within the office.

Encryption is the best way to ensure that healthcare data is protected from threats.

We recommend and assist our clients with staff trainings that highlight realistic protection measures, including phishing awareness and ransomware responses.

It is essential that your backups are offsite and secure, in the event your practice is breached. Test your response time to get your practice operating once a cyber attack has occurred.

If you need help protecting your patient data, we can help. Contact Rickard & Associates today.

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We publish vital information on health law topics and news every Wednesday and Friday. To get this important information delivered directly to your mailbox, subscribe today!

Do you need help updating your Business Associate Agreement or negotiating contracts with third-party vendors? We can help. To contact us about your Business Associate Agreement, your vendor contracts or your other legal needs, call us today.

My Loved One Passed Away – What Do I Need To Do?

Losing a loved one is incredibly hard. We help our clients with the administrative and legal aspects following the death of a loved one.

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When a loved one dies, there are many things to do and many are time sensitive.

First, there are many practical items to consider. These may include:

Finding care for any pets;
Determining if there are funeral instructions, arrangements, or prepayments;
Notifying family and friends;
Preparing an obituary;
Securing the home, and many other practical items.

After the initial matters have been addressed, it is important to know whether there is an estate plan.

The trustee must be notified so that they can take action, pursuant to the terms of the estate plan.

Even if no estate plan exists, surviving loved ones should still take action to:

Determine any professional advisors, such as financial advisors, lawyers, etc.;
Obtain copies of the death certificate; and
locate any life insurance policies, bank statements, and other legal documents.

The administrative side of losing a loved one can be overwhelming.

We help our clients walk through this critical and trying time to help make the process as smooth as possible.

If you need help with your estate plan or following the death of a loved one, we can help.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

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Healthcare Encryption Exceptions? – Rickard & Associates

We know that all emails and text messages that contain protected health information (PHI) should be encrypted.

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Are there any exceptions to the encryption rule?

Just one.

Patients can communicate with covered entities using unencrypted email and text messages, if the patients have been informed of the increased risk.

Patients can opt to have reminders sent via text messages or emails.

One issue that many healthcare providers have regarding encryption, is failing to fully realize all information that is PHI. PHI is an incredibly broad classification that includes much more than just a patient’s name or address or Social Security Number.

Another issue that healthcare providers must face is the over labeling of portals, storage, services as being “HIPAA compliant”.

While some of these services are HIPAA compliant, some are not and it is the covered entity’s job to do their due diligence.

While encryption is an addressable implementation specification, it is an incredibly useful tool for healthcare providers and can greatly reduce penalties in the event of a breach.

Healthcare entities should perform routine and thorough risk assessments to check for areas of vulnerability.

If you need help updating your compliance plan, auditing, or training staff, contact us today.

We know you’re busy. Subscribe to our blog to get updates and news sent directly to your inbox!

We publish vital information on health law topics and news every Wednesday and Friday. To get this important information delivered directly to your mailbox, subscribe today!

What is a Power of Attorney?

Many of our clients have heard of the powers of attorney, but do not know what they actually entail.

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It is important to know that there are different types of powers of attorney, however, they are all legal documents that allow you to pick an agent or attorney-in-fact on your behalf.

Powers of attorney allow another person to make financial, legal, and medical decisions for you, depending on the type.

There are different types of powers of attorney. Some include:

Durable Power of Attorney – A durable power of attorney is one that is effective, even upon incapacitation. It allows the appointed person the power to make decisions on your behalf, whether financial or legal.
Limited Power of Attorney – A limited power of attorney restricts the powers to certain designated powers, such as selling property.
Medical Power of Attorney – This allows you to name a person to make medical decisions for you. This is helpful if you are incapacitated and need medical care.

There are other ways to structure powers of attorney too.

Many people choose their spouse or a close relative to act as their power of attorney.

If you no longer want that person to act on your behalf, you can revoke your power of attorney and pick a new person to list in new documents.

The reason we recommend having the powers of attorney in place is so that you are in control of who makes decisions on your behalf, should you be unable to make those decisions.

If you need help with your power of attorney, we can help.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

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US Industrial Production Unexpectedly Unchanged In February

A report released by the Federal Reserve on Friday showed US industrial production was unexpectedly unchanged in the month of February.

The Fed said industrial production was unchanged in February following a revised 0.3 percent increase in January.

Economists had expected industrial production to rise by 0.2 percent compared to the unchanged reading originally reported for the previous month.

Industrial production came unchanged as a 0.1 percent uptick in manufacturing output and a 0.5 percent advance in utilities output were offset by a 0.6 percent drop in mining output.

Oren Klachkin, Lead US Economist at Oxford Economics, predicted industrial production will lose momentum later this year as the economy suffers a mild recession.

“Industrial output will struggle amid the challenges of weakening domestic demand, frail overseas demand, rising interest rates, and a strong US dollar,” Klachkin said.

“Turmoil in the banking sector corroborates our view that the economy is starting to feel the effects of monetary policy tightening,” he added. “We think more Fed rate hikes in the pipeline, so the risks to the outlook are tilted to the downside.”

The report also said capacity utilization in the industrial sector came in at 78.0 percent in February, unchanged from the revised figure for January.

Economists had expected capacity utilization to inch up to 78.4 percent from the 78.3 percent originally reported for the previous month.

Capacity utilization in the utilities sector crept up to 68.9 percent, while capacity utilization in the manufacturing and mining sectors dipped to 77.6 percent and 87.3 percent, respectively.

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Business News

Rivian stock tanks as it announces $1.3B ‘green bond’ offering [Video]

Rivian (RIVN) shares are sliding today as the EV-maker announced plans for a “green” debt offering.

Rivian says it intends to sell $1.3 billion worth of “green” convertible senior notes due in 2029, with the option to grant an additional $200 million worth of convertible notes to the original purchasers.

In line with Rivian’s ethos as a company (it’s a Climate Pledge signatory and was the first to say it won’t use deep-sea mining for batteries), it intends to use the capital it raises for “green” or environmental purposes.

“Rivian intends to use the net proceeds from the offering to finance, refinance, make direct investments in, in whole or in part, one or more new or recently completed… current and/or future eligible green projects,” the company said in a statement. Rivian said these projects could include activities tied to clean transportation, renewable energy, circular economy (ie, recycling batteries/metals), energy efficiency, and pollution prevention.

Rivian said the green-note offering meets the eligibility requirements as determined by the International Capital Markets Association’s “Green Bond Principles” guidelines.

In its most recent earnings report, Rivian barely reached its production goal for the year but reported an adjusted EBITDA loss of $5.22 billion. With the company forecasting another adjusted EBITDA loss of $4.3 billion for 2023, it’s not surprising that it’s seeking additional sources of funding. Rivian reported it had cash on hand of $12.01 billion at the end of the fourth quarter and expects capital expenditures to reach $2 billion for the year. Rivian is also in the midst of developing its next factory in Georgia, where its next-generation R2 vehicles will be built. Rivian says production of that vehicle will start in 2026.

Indianapolis - Circa August 2022: Rivian R1T Pickup Truck display at a dealership. Rivian offers the R1T in Explore, Adventure and Launch models. — Indianapolis – Circa August 2022: Rivian R1T Pickup Truck display at a dealership. Rivian offers the R1T in Explore, Adventure and Launch models.

With a long lead time until its next vehicle, Rivian’s cash situation is a key focus for analysts and investors.

“We’re forecasting 2023 cash burn of $5.5B helped by working cap. RIVN guided to a 40% improvement in FCF in 2024 driven by their target of positive gross margins. We est. RIVN will need to raise financing by the end of 2024,” Wells Fargo analyst Colin Langan wrote in a note the day after Rivian’s latest earnings release predicting today’s announcement of a capital raise. Langan currently has an Equal Weight rating on the stock with an $18 price target.

With questions still remaining about how many vehicles the company can churn out in 2023, Rivian’s recent stock volatility may be a regular occurrence without more evidence of production gains and cash preservation initiatives.

—

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

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