Heungkuk MetaltechLtd (KOSDAQ:010240) Has Announced A Dividend Of ₩220.00

The board of Heungkuk Metaltech Co.,Ltd. (KOSDAQ:010240) has announced that it will pay a dividend on the 20th of April, with investors receiving ₩220.00 per share. This makes the dividend yield 4.5%, which will augment investor returns quite nicely.

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Heungkuk MetaltechLtd's Future Dividend Projections Appear Well Covered By Earnings

While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. However, Heungkuk MetaltechLtd's earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share could rise by 1.9% over the next year if the trend from the last few years continues. Assuming the dividend continues along recent trends, we think the payout ratio could be 28% by next year, which is in a pretty sustainable range.

Check out our latest analysis for Heungkuk MetaltechLtd

Heungkuk MetaltechLtd Doesn't Have A Long Payment History

The dividend's track record has been pretty solid, but with only 6 years of history we want to see a few more years of history before making any solid conclusions. The dividend has gone from an annual total of ₩125.00 in 2019 to the most recent total annual payment of ₩220.00. This works out to be a compound annual growth rate (CAGR) of approximately 9.9% a year over that time. Investors will likely want to see a longer track record of growth before making decision to add this to their income portfolio.

The Dividend's Growth Prospects Are Limited

The company's investors will be pleased to have been receiving dividend income for some time. Heungkuk MetaltechLtd hasn't seen much change in its earnings per share over the last five years. While EPS growth is quite low, Heungkuk MetaltechLtd has the option to increase the payout ratio to return more cash to shareholders.

Our Thoughts On Heungkuk MetaltechLtd's Dividend

Overall, a consistent dividend is a good thing, and we think that Heungkuk MetaltechLtd has the ability to continue this into the future. The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. To that end, Heungkuk MetaltechLtd has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.