KTB Investment & Securities Co., Ltd. (KRX:030210) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

It looks like KTB Investment & Securities Co., Ltd. (KRX:030210) is about to go ex-dividend in the next three 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 10th of April.

KTB Investment & Securities's upcoming dividend is ₩150 a share, following on from the last 12 months, when the company distributed a total of ₩150 per share to shareholders. Looking at the last 12 months of distributions, KTB Investment & Securities has a trailing yield of approximately 4.6% on its current stock price of ₩3230. 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! We need to see whether the dividend is covered by earnings and if it's growing.

View our latest analysis for KTB Investment & Securities

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. KTB Investment & Securities is paying out just 12% 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 KTB Investment & Securities 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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it's a relief to see KTB Investment & Securities earnings per share are up 7.7% per annum over the last five years.

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

Final Takeaway

Is KTB Investment & Securities worth buying for its dividend? KTB Investment & Securities 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. We think this is a pretty attractive combination, and would be interested in investigating KTB Investment & Securities more closely.

On that note, you'll want to research what risks KTB Investment & Securities is facing. To that end, you should learn about the 4 warning signs we've spotted with KTB Investment & Securities (including 1 which is a bit unpleasant).

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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