Income Investors Should Know That Seoho Electric Co.,Ltd (KOSDAQ:065710) Goes Ex-Dividend Soon

It looks like Seoho Electric Co.,Ltd (KOSDAQ:065710) is about to go ex-dividend in the next three days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Thus, you can purchase Seoho ElectricLtd's shares before the 27th of December in order to receive the dividend, which the company will pay on the 14th of April.

The company's next dividend payment will be ₩1000.00 per share, on the back of last year when the company paid a total of ₩1,000 to shareholders. Based on the last year's worth of payments, Seoho ElectricLtd stock has a trailing yield of around 4.4% on the current share price of ₩22750.00. If you buy this business for its dividend, you should have an idea of whether Seoho ElectricLtd's dividend is reliable and sustainable. As a result, readers should always check whether Seoho ElectricLtd has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Seoho ElectricLtd

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Last year Seoho ElectricLtd paid out 95% of its profits as dividends to shareholders, suggesting the dividend is not well covered by 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. Fortunately, it paid out only 37% of its free cash flow in the past year.

It's good to see that while Seoho ElectricLtd's dividends were not well covered by profits, at least they are affordable from a cash perspective. Still, if this were to happen repeatedly, we'd be concerned about whether the dividend is sustainable in a downturn.

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

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. 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 Seoho ElectricLtd's earnings per share have risen 15% per annum over the last five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, five years ago, Seoho ElectricLtd has lifted its dividend by approximately 15% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

Final Takeaway

From a dividend perspective, should investors buy or avoid Seoho ElectricLtd? It's good to see earnings per share growing and low cashflow payout ratio, although we're uncomfortable with Seoho ElectricLtd's paying out such a high percentage of its profit. Overall, it's hard to get excited about Seoho ElectricLtd from a dividend perspective.

So while Seoho ElectricLtd looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Case in point: We've spotted 3 warning signs for Seoho ElectricLtd you should be aware of.

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.