Soosan Cebotics (KRX:017550) Is Paying Out A Dividend Of ₩10.00

Soosan Cebotics Co., Ltd. (KRX:017550) will pay a dividend of ₩10.00 on the 27th of April. This means the annual payment will be 0.6% of the current stock price, which is lower than the industry average.

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Soosan Cebotics' Projected Earnings Seem Likely To Cover Future Distributions

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Before making this announcement, Soosan Cebotics was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Over the next year, EPS could expand by 99.1% if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could be 2.9% 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

Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. The most recent annual payment of ₩10.00 is about the same as the annual payment 6 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

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Soosan Cebotics has seen EPS rising for the last five years, at 99% per annum. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.

We Really Like Soosan Cebotics' Dividend

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. 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 in all, this checks a lot of the boxes we look for when choosing an income stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 1 warning sign for Soosan Cebotics that investors need to be conscious of moving forward. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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