Powerlogics Co., Ltd. (KOSDAQ:047310) Pays A ₩50.00 Dividend In Just Three Days

Powerlogics Co., Ltd. (KOSDAQ:047310) is about to trade ex-dividend in the next three days. You will need to purchase shares before the 29th of December to receive the dividend, which will be paid on the 10th of April.

Powerlogics's next dividend payment will be ₩50.00 per share, on the back of last year when the company paid a total of ₩50.00 to shareholders. Calculating the last year's worth of payments shows that Powerlogics has a trailing yield of 0.6% on the current share price of ₩8710. If you buy this business for its dividend, you should have an idea of whether Powerlogics's dividend is reliable and sustainable. So we need to investigate whether Powerlogics can afford its dividend, and if the dividend could grow.

Check out our latest analysis for Powerlogics

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Powerlogics 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. Considering the lack of profitability, we also need to check if the company generated enough cash flow to cover the dividend payment. If Powerlogics didn't generate enough cash to pay the dividend, then it must have either paid from cash in the bank or by borrowing money, neither of which is sustainable in the long term. It paid out 76% of its free cash flow as dividends, which is within usual limits but will limit the company's ability to lift the dividend if there's no growth.

Click here to see how much of its profit Powerlogics 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. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Powerlogics reported a loss last year, but at least the general trend suggests its income has been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors.

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

We update our analysis on Powerlogics every 24 hours, so you can always get the latest insights on its financial health, here.

Final Takeaway

Has Powerlogics got what it takes to maintain its dividend payments? It's hard to get used to Powerlogics paying a dividend despite reporting a loss over the past year. At least the dividend was covered by free cash flow, however. All things considered, we are not particularly enthused about Powerlogics from a dividend perspective.

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

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

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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.
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