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    Home»Stock Market»Mr Price Group Limited (JSE:MRP) Is About To Go Ex-Dividend, And It Pays A 4.1% Yield
    Stock Market

    Mr Price Group Limited (JSE:MRP) Is About To Go Ex-Dividend, And It Pays A 4.1% Yield

    June 28, 20255 Mins Read


    Mr Price Group Limited (JSE:MRP) stock is about to trade ex-dividend in 3 days. Typically, the ex-dividend date is two business days 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 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. Thus, you can purchase Mr Price Group’s shares before the 2nd of July in order to receive the dividend, which the company will pay on the 7th of July.

    The company’s next dividend payment will be R05.935 per share, and in the last 12 months, the company paid a total of R8.97 per share. Looking at the last 12 months of distributions, Mr Price Group has a trailing yield of approximately 4.1% on its current stock price of R0219.00. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether Mr Price Group can afford its dividend, and if the dividend could grow.

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    Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Mr Price Group is paying out an acceptable 63% of its profit, a common payout level among most companies. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It distributed 29% of its free cash flow as dividends, a comfortable payout level for most companies.

    It’s positive to see that Mr Price Group’s dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

    Check out our latest analysis for Mr Price Group

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

    historic-dividend
    JSE:MRP Historic Dividend June 28th 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 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 encouraged by the steady growth at Mr Price Group, with earnings per share up 6.1% on average over the last five years. While earnings have been growing at a credible rate, the company is paying out a majority of its earnings to shareholders. If management lifts the payout ratio further, we’d take this as a tacit signal that the company’s growth prospects are slowing.

    Many investors will assess a company’s dividend performance by evaluating how much the dividend payments have changed over time. Mr Price Group has delivered 4.5% dividend growth per year on average over the past 10 years. We’re glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

    Has Mr Price Group got what it takes to maintain its dividend payments? While earnings per share growth has been modest, Mr Price Group’s dividend payouts are around an average level; without a sharp change in earnings we feel that the dividend is likely somewhat sustainable. Pleasingly the company paid out a conservatively low percentage of its free cash flow. It might be worth researching if the company is reinvesting in growth projects that could grow earnings and dividends in the future, but for now we’re not all that optimistic on its dividend prospects.

    With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Every company has risks, and we’ve spotted 1 warning sign for Mr Price Group 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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    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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