Soosan Cebotics' (KRX:017550) Dividend Will Be ₩10.00

Soosan Cebotics Co., Ltd. (KRX:017550) has announced that it will pay a dividend of ₩10.00 per share on the 27th of April. This payment means the dividend yield will be 0.6%, which is below the average for the industry.

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Soosan Cebotics' Projected Earnings Seem Likely To Cover Future Distributions

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Before making this announcement, Soosan Cebotics was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

If the trend of the last few years continues, EPS will grow by 180.9% over the next 12 months. Assuming the dividend continues along recent trends, we think the payout ratio could be 1.8% by next year, which is in a pretty sustainable range.

See our latest analysis for Soosan Cebotics

Soosan Cebotics 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 last annual payment of ₩10.00 was flat on the annual payment from6 years ago. We like that the dividend hasn't been shrinking. However we're conscious that the company hasn't got an overly long track record of dividend payments yet, which makes us wary of relying on its dividend income.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. We are encouraged to see that Soosan Cebotics has grown earnings per share at 181% per year over the past five years. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend.

Soosan Cebotics 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. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 1 warning sign for Soosan Cebotics that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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