Be Sure To Check Out Anhui Jiuhuashan Tourism Development Co., Ltd. (SHSE:603199) Before It Goes Ex-Dividend

It looks like Anhui Jiuhuashan Tourism Development Co., Ltd. (SHSE:603199) is about to go ex-dividend in the next 3 days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase Anhui Jiuhuashan Tourism Development's shares on or after the 6th of June, you won't be eligible to receive the dividend, when it is paid on the 6th of June.

The company's next dividend payment will be CN¥0.79 per share, on the back of last year when the company paid a total of CN¥0.79 to shareholders. Last year's total dividend payments show that Anhui Jiuhuashan Tourism Development has a trailing yield of 2.2% on the current share price of CN¥35.32. If you buy this business for its dividend, you should have an idea of whether Anhui Jiuhuashan Tourism Development's dividend is reliable and sustainable. So we need to investigate whether Anhui Jiuhuashan Tourism Development can afford its dividend, and if the dividend could grow.

See our latest analysis for Anhui Jiuhuashan Tourism Development

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. Anhui Jiuhuashan Tourism Development paid out more than half (53%) of its earnings last year, which is a regular payout ratio for most companies.

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

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. For this reason, we're glad to see Anhui Jiuhuashan Tourism Development's earnings per share have risen 12% per annum over the last five years. Anhui Jiuhuashan Tourism Development has an average payout ratio which suggests a balance between growing earnings and rewarding shareholders. Given the quick rate of earnings per share growth and current level of payout, there may be a chance of further dividend increases in the future.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past nine years, Anhui Jiuhuashan Tourism Development has increased its dividend at approximately 23% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

The Bottom Line

Is Anhui Jiuhuashan Tourism Development an attractive dividend stock, or better left on the shelf? Earnings per share are growing nicely, and Anhui Jiuhuashan Tourism Development is paying out a percentage of its earnings that is around the average for dividend-paying stocks. Overall, Anhui Jiuhuashan Tourism Development looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

So while Anhui Jiuhuashan Tourism Development looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. For example - Anhui Jiuhuashan Tourism Development has 1 warning sign we think you should be aware of.

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.

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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.