Korea Information Certificate Authority (KOSDAQ:053300) Is Due To Pay A Dividend Of ₩150.00

Korea Information Certificate Authority, Inc. (KOSDAQ:053300) has announced that it will pay a dividend of ₩150.00 per share on the 24th of April. This makes the dividend yield 2.5%, which will augment investor returns quite nicely.

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Korea Information Certificate Authority's Projected Earnings Seem Likely To Cover Future Distributions

While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. The last dividend was quite easily covered by Korea Information Certificate Authority's earnings. This means that a large portion of its earnings are being retained to grow the business.

Looking forward, earnings per share could rise by 7.5% over the next year if the trend from the last few years continues. If the dividend continues on this path, the payout ratio could be 38% by next year, which we think can be pretty sustainable going forward.

View our latest analysis for Korea Information Certificate Authority

Korea Information Certificate Authority's Dividend Has Lacked Consistency

Looking back, Korea Information Certificate Authority's dividend hasn't been particularly consistent. This suggests that the dividend might not be the most reliable. The annual payment during the last 6 years was ₩80.00 in 2019, and the most recent fiscal year payment was ₩150.00. This implies that the company grew its distributions at a yearly rate of about 11% over that duration. Despite the rapid growth in the dividend over the past number of years, we have seen the payments go down the past as well, so that makes us cautious.

We Could See Korea Information Certificate Authority's Dividend Growing

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Korea Information Certificate Authority has impressed us by growing EPS at 7.5% per year over the past five years. Shareholders are getting plenty of the earnings returned to them, which combined with strong growth makes this quite appealing.

In Summary

Overall, a consistent dividend is a good thing, and we think that Korea Information Certificate Authority has the ability to continue this into the future. The payout ratio looks good, but unfortunately the company's dividend track record isn't stellar. The payment isn't stellar, but it could make a decent addition to a dividend portfolio.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for Korea Information Certificate Authority that investors should know about before committing capital to this stock. 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.