Lindeman Asia Investment (KOSDAQ:277070) Will Pay A Dividend Of ₩79.00

Lindeman Asia Investment Corporation (KOSDAQ:277070) will pay a dividend of ₩79.00 on the 9th of April. The dividend yield is 1.6% based on this payment, which is a little bit low compared to the other companies in the industry.

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Lindeman Asia Investment's 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. However, prior to this announcement, Lindeman Asia Investment's dividend was comfortably covered by both cash flow and earnings. As a result, a large proportion of what it earned was being reinvested back into the business.

Unless the company can turn things around, EPS could fall by 0.3% over the next year. Assuming the dividend continues along recent trends, we believe the payout ratio could be 23%, which we are pretty comfortable with and we think is feasible on an earnings basis.

Check out our latest analysis for Lindeman Asia Investment

Lindeman Asia Investment's Dividend Has Lacked Consistency

Looking back, Lindeman Asia Investment's dividend hasn't been particularly consistent. Due to this, we are a little bit cautious about the dividend consistency over a full economic cycle. Since 2019, the dividend has gone from ₩89.00 total annually to ₩79.00. The dividend has shrunk at around 2.0% a year during that period. A company that decreases its dividend over time generally isn't what we are looking for.

Dividend Growth May Be Hard To Achieve

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. However, Lindeman Asia Investment's EPS was effectively flat over the past five years, which could stop the company from paying more every year.

Our Thoughts On Lindeman Asia Investment's Dividend

In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Lindeman Asia Investment's payments, as there could be some issues with sustaining them into the future. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. This company is not in the top tier of income providing stocks.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've identified 4 warning signs for Lindeman Asia Investment (1 is potentially serious!) that you should be aware of before investing. Is Lindeman Asia Investment not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.