The LEADCORP, Inc. (KOSDAQ:012700) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

The LEADCORP, Inc. (KOSDAQ:012700) stock is about to trade ex-dividend in four days. Ex-dividend means that investors that purchase the stock on or after the 29th of December will not receive this dividend, which will be paid on the 22nd of April.

LEADCORP's next dividend payment will be ₩100.00 per share, on the back of last year when the company paid a total of ₩150 to shareholders. Last year's total dividend payments show that LEADCORP has a trailing yield of 2.2% on the current share price of ₩6940. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to investigate whether LEADCORP can afford its dividend, and if the dividend could grow.

View our latest analysis for LEADCORP

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. LEADCORP paid out just 24% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

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

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it's a relief to see LEADCORP earnings per share are up 2.5% per annum over the last five years.

Unfortunately LEADCORP has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

To Sum It Up

Is LEADCORP worth buying for its dividend? LEADCORP has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. In summary, LEADCORP appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

In light of that, while LEADCORP has an appealing dividend, it's worth knowing the risks involved with this stock. For example - LEADCORP has 1 warning sign we think you should be aware of.

If you're in the market for dividend stocks, we recommend checking our list of top 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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