Kyungin Synthetic (KRX:012610) Has Affirmed Its Dividend Of ₩50.00

The board of Kyungin Synthetic Co., Ltd. (KRX:012610) has announced that it will pay a dividend of ₩50.00 per share on the 15th of April. This means that the annual payment will be 1.8% of the current stock price, which is in line with the average for the industry.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Kyungin Synthetic's Projected Earnings Seem Likely To Cover Future Distributions

Unless the payments are sustainable, the dividend yield doesn't mean too much. However, prior to this announcement, Kyungin Synthetic's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business.

If the trend of the last few years continues, EPS will grow by 8.7% over the next 12 months. Assuming the dividend continues along recent trends, we think the payout ratio could be 29% by next year, which is in a pretty sustainable range.

See our latest analysis for Kyungin Synthetic

Kyungin Synthetic Doesn't Have A Long Payment History

Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. The last annual payment of ₩50.00 was flat on the annual payment from6 years ago. We like that the dividend hasn't been shrinking. However we're conscious that the company hasn't got an overly long track record of dividend payments yet, which makes us wary of relying on its dividend income.

We Could See Kyungin Synthetic's Dividend Growing

The company's investors will be pleased to have been receiving dividend income for some time. Kyungin Synthetic has seen EPS rising for the last five years, at 8.7% per annum. With a decent amount of growth and a low payout ratio, we think this bodes well for Kyungin Synthetic's prospects of growing its dividend payments in the future.

Kyungin Synthetic Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Kyungin Synthetic might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. To that end, Kyungin Synthetic has 3 warning signs (and 2 which are concerning) we think you should know about. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.