JUSUNG ENGINEERINGLtd (KOSDAQ:036930) Has Affirmed Its Dividend Of ₩287.00

JUSUNG ENGINEERING Co.,Ltd.'s (KOSDAQ:036930) investors are due to receive a payment of ₩287.00 per share on 27th of April. Based on this payment, the dividend yield will be 1.0%, which is fairly typical for the industry.

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JUSUNG ENGINEERINGLtd's Future Dividend Projections Appear Well Covered By Earnings

While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. However, JUSUNG ENGINEERINGLtd's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

The next year is set to see EPS grow by 35.3%. If the dividend continues along recent trends, we estimate the payout ratio will be 11%, which is in the range that makes us comfortable with the sustainability of the dividend.

See our latest analysis for JUSUNG ENGINEERINGLtd

JUSUNG ENGINEERINGLtd's Dividend Has Lacked Consistency

It's comforting to see that JUSUNG ENGINEERINGLtd has been paying a dividend for a number of years now, however it has been cut at least once in that time. This suggests that the dividend might not be the most reliable. Since 2019, the dividend has gone from ₩100.00 total annually to ₩287.00. This means that it has been growing its distributions at 19% per annum over that time. JUSUNG ENGINEERINGLtd has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, so we would be cautious about buying this stock solely for the dividend income.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. JUSUNG ENGINEERINGLtd has seen EPS rising for the last five years, at 88% per annum. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.

We Really Like JUSUNG ENGINEERINGLtd's Dividend

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Earnings growth generally bodes well for the future value of company dividend payments. See if the 7 JUSUNG ENGINEERINGLtd analysts we track are forecasting continued growth with our free report on analyst estimates for the company. 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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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.