Do These 3 Checks Before Buying Coloray International Investment Co., Ltd. (KOSDAQ:900310) For Its Upcoming Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Coloray International Investment Co., Ltd. (KOSDAQ:900310) is about to go ex-dividend in just four days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase Coloray International Investment's shares before the 27th of December in order to be eligible for the dividend, which will be paid on the 27th of May.

The company's next dividend payment will be ₩10.70 per share, and in the last 12 months, the company paid a total of ₩10.70 per share. Last year's total dividend payments show that Coloray International Investment has a trailing yield of 1.9% on the current share price of ₩575.00. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Coloray International Investment has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Coloray International Investment

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. Coloray International Investment paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run.

Click here to see how much of its profit Coloray International Investment paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. Coloray International Investment reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.

Given that Coloray International Investment has only been paying a dividend for a year, there's not much of a past history to draw insight from.

Remember, you can always get a snapshot of Coloray International Investment's financial health, by checking our visualisation of its financial health, here.

To Sum It Up

Should investors buy Coloray International Investment for the upcoming dividend? These characteristics don't generally lead to outstanding dividend performance, and investors may not be happy with the results of owning this stock for its dividend.

Having said that, if you're looking at this stock without much concern for the dividend, you should still be familiar of the risks involved with Coloray International Investment. To that end, you should learn about the 3 warning signs we've spotted with Coloray International Investment (including 2 which are potentially serious).

If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.

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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.