Procter & Gamble Health Ex-Dividend Date Looms with Sustainability Questions

Procter & Gamble Health Limited (NSE:PGHL) is about to go ex-dividend, meaning that any trade on the stock must be settled on or before the record date. The company's next dividend payment will be ₹45.00 per share, paid on September 27th.

The company's payout ratio is around 63% of its earnings last year, which is a regular range for most companies. However, it paid out 106% of its free cash flow over the past year, which raises concerns about sustainability.

Procter & Gamble Health's earnings per share have been growing at 14% a year for the past five years, but we're concerned that dividend payments consumed most of the company's cash flow. The historical rate of dividend growth is approximately 32% a year over the last decade.