Be Sure To Check Out Hyundai Mobis Co.,Ltd (KRX:012330) Before It Goes Ex-Dividend

Hyundai Mobis Co.,Ltd (KRX:012330) stock is about to trade ex-dividend in four days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase Hyundai MobisLtd's shares before the 21st of March to receive the dividend, which will be paid on the 18th of April.

The company's next dividend payment will be ₩5000.00 per share, and in the last 12 months, the company paid a total of ₩6,000 per share. Looking at the last 12 months of distributions, Hyundai MobisLtd has a trailing yield of approximately 2.3% on its current stock price of ₩255500.00. 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.

Check out our latest analysis for Hyundai MobisLtd

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Hyundai MobisLtd has a low and conservative payout ratio of just 14% of its income after tax. A useful secondary check can be to evaluate whether Hyundai MobisLtd generated enough free cash flow to afford its dividend. It paid out 21% of its free cash flow as dividends last year, which is conservatively low.

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 the company's payout ratio, plus analyst estimates of its future dividends.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. For this reason, we're glad to see Hyundai MobisLtd's earnings per share have risen 13% per annum over the last five years. Earnings per share have been growing rapidly and the company is retaining a majority of its earnings within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last six years, Hyundai MobisLtd has lifted its dividend by approximately 7.0% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

The Bottom Line

Is Hyundai MobisLtd an attractive dividend stock, or better left on the shelf? Hyundai MobisLtd has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. Hyundai MobisLtd looks solid on this analysis overall, and we'd definitely consider investigating it more closely.

Ever wonder what the future holds for Hyundai MobisLtd? See what the 27 analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

If you're in the market for strong dividend payers, we recommend checking our selection of top 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.