Three Days Left To Buy Yura Tech. Co., Ltd. (KOSDAQ:048430) Before The Ex-Dividend Date

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Yura Tech. Co., Ltd. (KOSDAQ:048430) is about to trade ex-dividend in the next three days. This means that investors who purchase shares on or after the 29th of December will not receive the dividend, which will be paid on the 13th of April.

Yura Tech's next dividend payment will be ₩100.00 per share, on the back of last year when the company paid a total of ₩100.00 to shareholders. Last year's total dividend payments show that Yura Tech has a trailing yield of 0.8% on the current share price of ₩12300. If you buy this business for its dividend, you should have an idea of whether Yura Tech's dividend is reliable and sustainable. As a result, readers should always check whether Yura Tech has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Yura Tech

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. That's why it's good to see Yura Tech paying out a modest 30% of its earnings. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 21% of its free cash flow as dividends last year, which is conservatively low.

It's positive to see that Yura Tech'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.

Click here to see how much of its profit Yura Tech paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with shrinking earnings are tricky from a dividend perspective. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're discomforted by Yura Tech's 25% per annum decline in earnings in the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Yura Tech has delivered 7.2% dividend growth per year on average over the past 10 years.

To Sum It Up

Has Yura Tech got what it takes to maintain its dividend payments? Yura Tech has comfortably low cash and profit payout ratios, which may mean the dividend is sustainable even in the face of a sharp decline in earnings per share. Still, we consider declining earnings to be a warning sign. All things considered, we are not particularly enthused about Yura Tech from a dividend perspective.

While it's tempting to invest in Yura Tech for the dividends alone, you should always be mindful of the risks involved. Every company has risks, and we've spotted 3 warning signs for Yura Tech (of which 1 is concerning!) you should know about.

If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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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