Only Three Days Left To Cash In On Kawasaki Geological Engineering's (TSE:4673) Dividend

It looks like Kawasaki Geological Engineering Co., Ltd. (TSE:4673) is about to go ex-dividend in the next 3 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Meaning, you will need to purchase Kawasaki Geological Engineering's shares before the 28th of November to receive the dividend, which will be paid on the 28th of February.

The company's upcoming dividend is JP¥25.00 a share, following on from the last 12 months, when the company distributed a total of JP¥50.00 per share to shareholders. Last year's total dividend payments show that Kawasaki Geological Engineering has a trailing yield of 2.0% on the current share price of JP¥2464.00. 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! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

View our latest analysis for Kawasaki Geological Engineering

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. That's why it's good to see Kawasaki Geological Engineering paying out a modest 30% of its earnings. 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. Fortunately, it paid out only 38% of its free cash flow in the past year.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

Click here to see how much of its profit Kawasaki Geological Engineering paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If earnings fall far enough, the company could be forced to cut its dividend.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Kawasaki Geological Engineering's dividend payments are broadly unchanged compared to where they were three years ago.

To Sum It Up

Is Kawasaki Geological Engineering an attractive dividend stock, or better left on the shelf? While it's not great to see that earnings per share are effectively flat over the three-year period we checked, at least the payout ratios are low and conservative. To summarise, Kawasaki Geological Engineering looks okay on this analysis, although it doesn't appear a stand-out opportunity.

On that note, you'll want to research what risks Kawasaki Geological Engineering is facing. To help with this, we've discovered 2 warning signs for Kawasaki Geological Engineering that you should be aware of before investing in their shares.

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