Be Sure To Check Out T.S. Investment Corporation (KOSDAQ:246690) Before It Goes Ex-Dividend

T.S. Investment Corporation (KOSDAQ:246690) is about to trade ex-dividend in the next three 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 14th of April.

T.S. Investment's next dividend payment will be ₩25.00 per share, on the back of last year when the company paid a total of ₩25.00 to shareholders. Looking at the last 12 months of distributions, T.S. Investment has a trailing yield of approximately 0.7% on its current stock price of ₩3390. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to investigate whether T.S. Investment can afford its dividend, and if the dividend could grow.

View our latest analysis for T.S. Investment

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. T.S. Investment paid out just 11% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.

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 T.S. 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. With that in mind, it's good to see earnings have grown 4.0% on last year.

One year is a very short time frame in the pantheon of investing, so we wouldn't get too hung up on these numbers.

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

Final Takeaway

Is T.S. Investment worth buying for its dividend? It has been growing its earnings per share somewhat in recent years, although it reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. T.S. 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 T.S. Investment looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. In terms of investment risks, we've identified 4 warning signs with T.S. Investment and understanding them should be part of your investment process.

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting 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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