Aju IB Investment Co., Ltd. (KOSDAQ:027360) Passed Our Checks, And It's About To Pay A ₩35.00 Dividend

It looks like Aju IB Investment Co., Ltd. (KOSDAQ:027360) is about to go ex-dividend in the next 3 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 13th of April.

Aju IB Investment's next dividend payment will be ₩35.00 per share, and in the last 12 months, the company paid a total of ₩35.00 per share. Based on the last year's worth of payments, Aju IB Investment has a trailing yield of 0.9% on the current stock price of ₩3870. If you buy this business for its dividend, you should have an idea of whether Aju IB Investment's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

View our latest analysis for Aju IB Investment

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. Aju IB Investment is paying out just 14% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

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

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's comforting to see Aju IB Investment's earnings have been skyrocketing, up 450% per annum for the past three years.

Given that Aju IB Investment has only been paying a dividend for a year, there's not much of a past history to draw insight from.

The Bottom Line

Is Aju IB Investment an attractive dividend stock, or better left on the shelf? When companies are growing rapidly and retaining a majority of the profits within the business, it's usually a sign that reinvesting earnings creates more value than paying dividends to shareholders. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. Aju IB Investment ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.

So while Aju IB Investment looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Be aware that Aju IB Investment is showing 3 warning signs in our investment analysis, and 1 of those is significant...

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

When trading Aju IB Investment or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.