KOLMAR BNH Co., Ltd. (KOSDAQ:200130) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

KOLMAR BNH Co., Ltd. (KOSDAQ:200130) stock is about to trade ex-dividend in 3 days. You will need to purchase shares before the 29th of December to receive the dividend, which will be paid on the 13th of April.

KOLMAR BNH's next dividend payment will be ₩250 per share. Last year, in total, the company distributed ₩250 to shareholders. Based on the last year's worth of payments, KOLMAR BNH stock has a trailing yield of around 0.5% on the current share price of ₩51200. If you buy this business for its dividend, you should have an idea of whether KOLMAR BNH's dividend is reliable and sustainable. As a result, readers should always check whether KOLMAR BNH has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for KOLMAR BNH

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. KOLMAR BNH paid out just 9.7% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. The good news is it paid out just 18% of its free cash flow in the last year.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

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. That's why it's comforting to see KOLMAR BNH's earnings have been skyrocketing, up 26% per annum for the past five years. With earnings per share growing rapidly and the company sensibly reinvesting almost all of its profits within the business, KOLMAR BNH looks like a promising growth company.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past three years, KOLMAR BNH has increased its dividend at approximately 16% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

Final Takeaway

From a dividend perspective, should investors buy or avoid KOLMAR BNH? We love that KOLMAR BNH is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future. KOLMAR BNH looks solid on this analysis overall, and we'd definitely consider investigating it more closely.

So while KOLMAR BNH 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 1 warning sign with KOLMAR BNH and understanding them should be part of your investment process.

If you're in the market for dividend stocks, we recommend checking our list of top 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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