We Wouldn’t Be Too Quick To Buy S&U plc (LON:SUS) Before It Goes Ex-Dividend

Simply Wall St

Sun, February 15, 2026 at 4:21 PM GMT+9 3 min read

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SUS.L

-1.68%

S&U plc (LON:SUS) stock is about to trade ex-dividend in 3 days. The ex-dividend date is two business days before a company’s record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a 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. Therefore, if you purchase S&U’s shares on or after the 19th of February, you won’t be eligible to receive the dividend, when it is paid on the 6th of March.

The company’s next dividend payment will be UK£0.35 per share. Last year, in total, the company distributed UK£1.05 to shareholders. Last year’s total dividend payments show that S&U has a trailing yield of 4.5% on the current share price of UK£23.40. 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! We need to see whether the dividend is covered by earnings and if it’s growing.

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Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. S&U paid out 64% of its earnings to investors last year, a normal payout level for most businesses.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Check out our latest analysis for S&U

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

LSE:SUS Historic Dividend February 15th 2026

Have Earnings And Dividends Been Growing?

Businesses with shrinking earnings are tricky from a dividend perspective. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we’re discomforted by S&U’s 7.3% per annum decline in earnings in the past five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls.

The main way most investors will assess a company’s dividend prospects is by checking the historical rate of dividend growth. In the past 10 years, S&U has increased its dividend at approximately 4.8% a year on average. Growing the dividend payout ratio while earnings are declining can deliver nice returns for a while, but it’s always worth checking for when the company can’t increase the payout ratio any more - because then the music stops.

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Final Takeaway

Is S&U worth buying for its dividend? Earnings per share have been declining and the company is paying out more than half its profits to shareholders; not an enticing combination. S&U doesn’t appear to have a lot going for it, and we’re not inclined to take a risk on owning it for the dividend.

So if you’re still interested in S&U despite it’s poor dividend qualities, you should be well informed on some of the risks facing this stock. Every company has risks, and we’ve spotted 2 warning signs for S&U you should know about.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

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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