Samsung Climate Control (KRX:006660) Will Pay A Dividend Of ₩80.00

Samsung Climate Control Co., Ltd. (KRX:006660) has announced that it will pay a dividend of ₩80.00 per share on the 27th of April. This payment means the dividend yield will be 0.6%, which is below the average for the industry.

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Samsung Climate Control's Payment Could Potentially Have Solid Earnings Coverage

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Before making this announcement, Samsung Climate Control was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS could expand by 45.2% if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could be 3.6% by next year, which is in a pretty sustainable range.

View our latest analysis for Samsung Climate Control

Samsung Climate Control's Dividend Has Lacked Consistency

Even in its relatively short history, the company has reduced the dividend at least once. This suggests that the dividend might not be the most reliable. Since 2018, the annual payment back then was ₩100.00, compared to the most recent full-year payment of ₩80.00. The dividend has shrunk at around 3.1% a year during that period. A company that decreases its dividend over time generally isn't what we are looking for.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. It's encouraging to see that Samsung Climate Control has been growing its earnings per share at 45% a year over the past five years. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future.

Samsung Climate Control Looks Like A Great Dividend Stock

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 1 warning sign for Samsung Climate Control that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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