Four Days Left Until DAEYANG ELECTRIC.Co.,Ltd. (KOSDAQ:108380) Trades Ex-Dividend

DAEYANG ELECTRIC.Co.,Ltd. (KOSDAQ:108380) is about to trade ex-dividend in the next 4 days. If you purchase the stock on or after the 29th of December, you won't be eligible to receive this dividend, when it is paid on the 9th of April.

DAEYANG ELECTRIC.Co.Ltd's next dividend payment will be ₩200 per share, and in the last 12 months, the company paid a total of ₩200 per share. Based on the last year's worth of payments, DAEYANG ELECTRIC.Co.Ltd has a trailing yield of 1.3% on the current stock price of ₩15000. If you buy this business for its dividend, you should have an idea of whether DAEYANG ELECTRIC.Co.Ltd's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.

See our latest analysis for DAEYANG ELECTRIC.Co.Ltd

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. DAEYANG ELECTRIC.Co.Ltd paid out just 19% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend.

Click here to see how much of its profit DAEYANG ELECTRIC.Co.Ltd paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're discomforted by DAEYANG ELECTRIC.Co.Ltd's 7.2% per annum decline in earnings in the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.

Given that DAEYANG ELECTRIC.Co.Ltd has only been paying a dividend for a year, there's not much of a past history to draw insight from.

Final Takeaway

Is DAEYANG ELECTRIC.Co.Ltd worth buying for its dividend? It's disappointing to see earnings per share declining, and this would ordinarily be enough to discourage us from most dividend stocks, even though DAEYANG ELECTRIC.Co.Ltd is paying out less than half its income as dividends. However, it's also paying out an uncomfortably high percentage of its cash flow, which makes us wonder just how sustainable the dividend really is. It's not the most attractive proposition from a dividend perspective, and we'd probably give this one a miss for now.

Having said that, if you're looking at this stock without much concern for the dividend, you should still be familiar of the risks involved with DAEYANG ELECTRIC.Co.Ltd. Every company has risks, and we've spotted 4 warning signs for DAEYANG ELECTRIC.Co.Ltd (of which 1 makes us a bit uncomfortable!) you should know about.

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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.
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