SAMPYO Cement (KOSDAQ:038500) Will Pay A Dividend Of ₩110.00

SAMPYO Cement Co., Ltd.'s (KOSDAQ:038500) investors are due to receive a payment of ₩110.00 per share on 29th of April. Based on this payment, the dividend yield will be 3.7%, which is fairly typical for the industry.

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SAMPYO Cement's Future Dividend Projections Appear Well Covered By Earnings

Solid dividend yields are great, but they only really help us if the payment is sustainable. However, SAMPYO Cement's earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.

Over the next year, EPS is forecast to expand by 72.7%. Assuming the dividend continues along recent trends, we think the payout ratio could be 15% by next year, which is in a pretty sustainable range.

Check out our latest analysis for SAMPYO Cement

SAMPYO Cement Doesn't Have A Long Payment History

It is great to see that SAMPYO Cement has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. The dividend has gone from an annual total of ₩50.00 in 2019 to the most recent total annual payment of ₩110.00. This means that it has been growing its distributions at 14% per annum over that time. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that SAMPYO Cement has grown earnings per share at 13% per year over the past five years. SAMPYO Cement definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

SAMPYO Cement Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think SAMPYO Cement might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 1 warning sign for SAMPYO Cement that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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