HYUNDAI MOVEX (KOSDAQ:319400) Is Paying Out A Dividend Of ₩50.00

HYUNDAI MOVEX Co., Ltd. (KOSDAQ:319400) has announced that it will pay a dividend of ₩50.00 per share on the 6th of April. This payment means the dividend yield will be 0.5%, which is below the average for the industry.

While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that HYUNDAI MOVEX's stock price has increased by 78% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.

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HYUNDAI MOVEX's Future Dividend Projections Appear Well Covered By Earnings

Even a low dividend yield can be attractive if it is sustained for years on end. However, prior to this announcement, HYUNDAI MOVEX's dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share is forecast to rise by 44.2% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 15% by next year, which is in a pretty sustainable range.

See our latest analysis for HYUNDAI MOVEX

HYUNDAI MOVEX Doesn't Have A Long Payment History

The company has maintained a consistent dividend for a few years now, but we would like to see a longer track record before relying on it. The annual payment during the last 4 years was ₩30.00 in 2021, and the most recent fiscal year payment was ₩50.00. This means that it has been growing its distributions at 14% per annum over that time. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. HYUNDAI MOVEX has seen EPS rising for the last five years, at 14% per annum. HYUNDAI MOVEX definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

HYUNDAI MOVEX Looks Like A Great Dividend Stock

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Case in point: We've spotted 2 warning signs for HYUNDAI MOVEX (of which 1 is significant!) 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.