Only Four Days Left To Cash In On SAMPYO Cement's (KOSDAQ:038500) Dividend

SAMPYO Cement Co., Ltd. (KOSDAQ:038500) stock is about to trade ex-dividend in four days. You will need to purchase shares before the 29th of December to receive the dividend, which will be paid on the 22nd of April.

SAMPYO Cement's next dividend payment will be ₩50.00 per share, and in the last 12 months, the company paid a total of ₩50.00 per share. Based on the last year's worth of payments, SAMPYO Cement has a trailing yield of 1.3% on the current stock price of ₩3760. 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.

See our latest analysis for SAMPYO Cement

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. That's why it's good to see SAMPYO Cement paying out a modest 35% of its earnings. 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 19% of its free cash flow last year.

It's positive to see that SAMPYO Cement's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

Click here to see how much of its profit SAMPYO Cement paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. SAMPYO Cement's earnings have collapsed faster than Wile E Coyote's schemes to trap the Road Runner; down a tremendous 36% a year over the past five years.

Unfortunately SAMPYO Cement has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

Final Takeaway

Is SAMPYO Cement worth buying for its dividend? SAMPYO Cement has comfortably low cash and profit payout ratios, which may mean the dividend is sustainable even in the face of a sharp decline in earnings per share. Still, we consider declining earnings to be a warning sign. In summary, while it has some positive characteristics, we're not inclined to race out and buy SAMPYO Cement today.

On that note, you'll want to research what risks SAMPYO Cement is facing. For instance, we've identified 2 warning signs for SAMPYO Cement (1 is significant) you should be aware of.

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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