Only Three Days Left To Cash In On Mirae Asset Life Insurance's (KRX:085620) Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Mirae Asset Life Insurance Co., Ltd. (KRX:085620) is about to trade ex-dividend in the next 3 days. You can purchase shares before the 29th of December in order to receive the dividend, which the company will pay on the 23rd of April.

Mirae Asset Life Insurance's upcoming dividend is ₩170 a share, following on from the last 12 months, when the company distributed a total of ₩170 per share to shareholders. Based on the last year's worth of payments, Mirae Asset Life Insurance stock has a trailing yield of around 4.2% on the current share price of ₩4020. 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! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

See our latest analysis for Mirae Asset Life Insurance

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. Mirae Asset Life Insurance has a low and conservative payout ratio of just 22% of its income after tax.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

Click here to see how much of its profit Mirae Asset Life Insurance paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with shrinking earnings are tricky from a dividend perspective. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Mirae Asset Life Insurance's earnings per share have fallen at approximately 7.3% a year over the previous five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.

Given that Mirae Asset Life Insurance 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 Mirae Asset Life Insurance an attractive dividend stock, or better left on the shelf? Earnings per share have shrunk noticeably in recent years, although we like that the company has a low payout ratio. This could suggest a cut to the dividend may not be a major risk in the near future. In sum this is a middling combination, and we find it hard to get excited about the company from a dividend perspective.

If you're not too concerned about Mirae Asset Life Insurance's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. Every company has risks, and we've spotted 3 warning signs for Mirae Asset Life Insurance (of which 1 makes us a bit uncomfortable!) you should know about.

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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