Here's What We Like About NAU IB Capital's (KOSDAQ:293580) Upcoming Dividend

It looks like NAU IB Capital (KOSDAQ:293580) is about to go ex-dividend in the next 3 days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. This means that investors who purchase NAU IB Capital's shares on or after the 27th of December will not receive the dividend, which will be paid on the 14th of April.

The company's next dividend payment will be ₩18.00 per share, on the back of last year when the company paid a total of ₩18.00 to shareholders. Based on the last year's worth of payments, NAU IB Capital has a trailing yield of 1.4% on the current stock price of ₩1258.00. 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 NAU IB Capital can afford its dividend, and if the dividend could grow.

View our latest analysis for NAU IB Capital

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. NAU IB Capital is paying out just 13% 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 NAU IB Capital paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That's why it's comforting to see NAU IB Capital's earnings have been skyrocketing, up 38% per annum for the past five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past five years, NAU IB Capital has increased its dividend at approximately 3.7% a year on average. Earnings per share have been growing much quicker than dividends, potentially because NAU IB Capital is keeping back more of its profits to grow the business.

To Sum It Up

Should investors buy NAU IB Capital for the upcoming dividend? 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. Overall, NAU IB Capital looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

On that note, you'll want to research what risks NAU IB Capital is facing. For example, we've found 3 warning signs for NAU IB Capital that we recommend you consider before investing in the business.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.