Jeil Technos Co.,Ltd (KOSDAQ:038010) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

It looks like Jeil Technos Co.,Ltd (KOSDAQ:038010) is about to go ex-dividend in the next 3 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Therefore, if you purchase Jeil TechnosLtd's shares on or after the 27th of December, you won't be eligible to receive the dividend, when it is paid on the 21st of April.

The company's next dividend payment will be ₩180.00 per share, and in the last 12 months, the company paid a total of ₩180 per share. Looking at the last 12 months of distributions, Jeil TechnosLtd has a trailing yield of approximately 3.2% on its current stock price of ₩5680.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.

Check out our latest analysis for Jeil TechnosLtd

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Jeil TechnosLtd paid out just 6.9% 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. Luckily it paid out just 3.7% of its free cash flow 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 how much of its profit Jeil TechnosLtd 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. That's why it's comforting to see Jeil TechnosLtd's earnings have been skyrocketing, up 34% per annum for the past five years. Jeil TechnosLtd looks like a real growth company, with earnings per share growing at a cracking pace and the company reinvesting most of its profits in the business.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Jeil TechnosLtd has lifted its dividend by approximately 34% 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

Has Jeil TechnosLtd got what it takes to maintain its dividend payments? Jeil TechnosLtd has grown its earnings per share while simultaneously reinvesting in the business. Unfortunately it's cut the dividend at least once in the past 10 years, but the conservative payout ratio makes the current dividend look sustainable. Jeil TechnosLtd looks solid on this analysis overall, and we'd definitely consider investigating it more closely.

While it's tempting to invest in Jeil TechnosLtd for the dividends alone, you should always be mindful of the risks involved. Case in point: We've spotted 2 warning signs for Jeil TechnosLtd you should be aware of.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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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.