Four Days Left Until Dongwoo Farm To Table Co ., Ltd (KOSDAQ:088910) Trades Ex-Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Dongwoo Farm To Table Co ., Ltd (KOSDAQ:088910) is about to trade ex-dividend in the next four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Thus, you can purchase Dongwoo Farm To Table Co's shares before the 27th of December in order to receive the dividend, which the company will pay on the 28th of April.

The company's next dividend payment will be ₩30.00 per share. Last year, in total, the company distributed ₩30.00 to shareholders. Based on the last year's worth of payments, Dongwoo Farm To Table Co has a trailing yield of 1.6% on the current stock price of ₩1918.00. 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 check whether the dividend payments are covered, and if earnings are growing.

View our latest analysis for Dongwoo Farm To Table Co

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. That's why it's good to see Dongwoo Farm To Table Co paying out a modest 33% of its earnings. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow.

Click here to see how much of its profit Dongwoo Farm To Table Co paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Dongwoo Farm To Table Co's earnings per share have plummeted approximately 34% a year over the previous five years.

Given that Dongwoo Farm To Table Co has only been paying a dividend for a year, there's not much of a past history to draw insight from.

To Sum It Up

Is Dongwoo Farm To Table Co worth buying for its dividend? It's disappointing to see earnings per share declining, and this would ordinarily be enough to discourage us from most dividend stocks, even though Dongwoo Farm To Table Co is paying out less than half its income as dividends. However, it's also paying out an uncomfortably high percentage of its cash flow, which makes us wonder just how sustainable the dividend really is. With the way things are shaping up from a dividend perspective, we'd be inclined to steer clear of Dongwoo Farm To Table Co.

So if you're still interested in Dongwoo Farm To Table Co despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. For example - Dongwoo Farm To Table Co has 4 warning signs we think you should be aware of.

If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.

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

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.