Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) stock is about to trade ex-dividend in four days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Sinclair Broadcast Group's shares before the 4th of March to receive the dividend, which will be paid on the 21st of March.

The company's next dividend payment will be US$0.25 per share, on the back of last year when the company paid a total of US$1.00 to shareholders. Looking at the last 12 months of distributions, Sinclair Broadcast Group has a trailing yield of approximately 3.7% on its current stock price of $27.39. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

View our latest analysis for Sinclair Broadcast Group

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Sinclair Broadcast Group's dividend is not well covered by earnings, as the company lost money last year. This is not a sustainable state of affairs, so it would be worth investigating if earnings are expected to recover.

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

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. Sinclair Broadcast Group reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Sinclair Broadcast Group has delivered 7.6% dividend growth per year on average over the past 10 years.

We update our analysis on Sinclair Broadcast Group every 24 hours, so you can always get the latest insights on its financial health, here.

To Sum It Up

Is Sinclair Broadcast Group worth buying for its dividend? This is not an overtly appealing combination of characteristics, and we're just not that interested in this company's dividend.

Although, if you're still interested in Sinclair Broadcast Group and want to know more, you'll find it very useful to know what risks this stock faces. For instance, we've identified 2 warning signs for Sinclair Broadcast Group (1 can't be ignored) you should be aware of.

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.