Hyundai Home Shopping Network Corporation (KRX:057050) Stock Goes Ex-Dividend In Just Three Days

Hyundai Home Shopping Network Corporation (KRX:057050) stock is about to trade ex-dividend in three days. You can purchase shares before the 29th of December in order to receive the dividend, which the company will pay on the 23rd of April.

Hyundai Home Shopping Network's next dividend payment will be ₩2,000 per share, on the back of last year when the company paid a total of ₩2,000 to shareholders. Based on the last year's worth of payments, Hyundai Home Shopping Network has a trailing yield of 2.4% on the current stock price of ₩83600. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Hyundai Home Shopping Network has been able to grow its dividends, or if the dividend might be cut.

View our latest analysis for Hyundai Home Shopping Network

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Hyundai Home Shopping Network paid out a comfortable 26% of its profit last year. A useful secondary check can be to evaluate whether Hyundai Home Shopping Network generated enough free cash flow to afford its dividend. Luckily it paid out just 13% of its free cash flow last year.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

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. Hyundai Home Shopping Network's earnings per share have fallen at approximately 8.8% a year over the previous five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Hyundai Home Shopping Network has delivered 7.2% dividend growth per year on average over the past 10 years.

Final Takeaway

Should investors buy Hyundai Home Shopping Network for the upcoming dividend? Hyundai Home Shopping Network 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. Overall we're not hugely bearish on the stock, but there are likely better dividend investments out there.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Case in point: We've spotted 2 warning signs for Hyundai Home Shopping Network 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.

If you decide to trade Hyundai Home Shopping Network, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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