GOLFZON NEWDIN HOLDINGS Co., Ltd. (KOSDAQ:121440) Looks Interesting, And It's About To Pay A Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see GOLFZON NEWDIN HOLDINGS Co., Ltd. (KOSDAQ:121440) is about to trade ex-dividend in the next 3 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. 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. Accordingly, GOLFZON NEWDIN HOLDINGS investors that purchase the stock on or after the 27th of December will not receive the dividend, which will be paid on the 14th of April.

The company's next dividend payment will be ₩167.00 per share, on the back of last year when the company paid a total of ₩167 to shareholders. Last year's total dividend payments show that GOLFZON NEWDIN HOLDINGS has a trailing yield of 4.7% on the current share price of ₩3585.00. 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! As a result, readers should always check whether GOLFZON NEWDIN HOLDINGS has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for GOLFZON NEWDIN HOLDINGS

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. GOLFZON NEWDIN HOLDINGS is paying out just 15% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It distributed 35% of its free cash flow as dividends, a comfortable payout level for most companies.

It's positive to see that GOLFZON NEWDIN HOLDINGS'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 GOLFZON NEWDIN HOLDINGS paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's encouraging to see GOLFZON NEWDIN HOLDINGS has grown its earnings rapidly, up 28% a year for the past five years. GOLFZON NEWDIN HOLDINGS is paying out less than half its earnings and cash flow, while simultaneously growing earnings per share at a rapid clip. This is a very favourable combination that can often lead to the dividend multiplying over the long term, if earnings grow and the company pays out a higher percentage of its earnings.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. GOLFZON NEWDIN HOLDINGS has delivered an average of 7.4% per year annual increase in its dividend, based on the past five years of dividend payments. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

The Bottom Line

Has GOLFZON NEWDIN HOLDINGS got what it takes to maintain its dividend payments? We love that GOLFZON NEWDIN HOLDINGS is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future. There's a lot to like about GOLFZON NEWDIN HOLDINGS, and we would prioritise taking a closer look at it.

Keen to explore more data on GOLFZON NEWDIN HOLDINGS's financial performance? Check out our visualisation of its historical revenue and earnings growth.

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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.