Woori Financial Group (KRX:316140) Will Pay A Dividend Of ₩180.00

Woori Financial Group Inc.'s (KRX:316140) investors are due to receive a payment of ₩180.00 per share on 11th of November. This means the annual payment will be 4.5% of the current stock price, which is lower than the industry average.

See our latest analysis for Woori Financial Group

Woori Financial Group's Dividend Forecasted To Be Well Covered By Earnings

Even a low dividend yield can be attractive if it is sustained for years on end.

Woori Financial Group has a good history of paying out dividends, with its current track record at 9 years. Past distributions do not necessarily guarantee future ones, but Woori Financial Group's payout ratio of 34% is a good sign for current shareholders as this means that earnings decently cover dividends.

Looking forward, EPS is forecast to rise by 26.4% over the next 3 years. Analysts estimate the future payout ratio will be 29% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.

Woori Financial Group's Dividend Has Lacked Consistency

Woori Financial Group has been paying dividends for a while, but the track record isn't stellar. This makes us cautious about the consistency of the dividend over a full economic cycle. Since 2015, the annual payment back then was ₩500.00, compared to the most recent full-year payment of ₩720.00. This works out to be a compound annual growth rate (CAGR) of approximately 4.1% a year over that time. Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent.

The Dividend Has Growth Potential

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Woori Financial Group has seen EPS rising for the last five years, at 5.0% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Our Thoughts On Woori Financial Group's Dividend

Overall, a consistent dividend is a good thing, and we think that Woori Financial Group has the ability to continue this into the future. While the payout ratios are a good sign, we are less enthusiastic about the company's dividend record. The payment isn't stellar, but it could make a decent addition to a dividend portfolio.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 2 warning signs for Woori Financial Group that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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