DAIHAN Scientific (KOSDAQ:131220) Is Paying Out A Dividend Of ₩60.00

The board of DAIHAN Scientific Co., Ltd. (KOSDAQ:131220) has announced that it will pay a dividend on the 13th of April, with investors receiving ₩60.00 per share. This makes the dividend yield 1.3%, which will augment investor returns quite nicely.

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DAIHAN Scientific's Future Dividend Projections Appear Well Covered By Earnings

If the payments aren't sustainable, a high yield for a few years won't matter that much. However, prior to this announcement, DAIHAN Scientific's dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share could rise by 15.7% over the next year if the trend from the last few years continues. If the dividend continues along recent trends, we estimate the payout ratio will be 12%, which is in the range that makes us comfortable with the sustainability of the dividend.

View our latest analysis for DAIHAN Scientific

DAIHAN Scientific Is Still Building Its Track Record

DAIHAN Scientific's dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. The last annual payment of ₩60.00 was flat on the annual payment from6 years ago. Modest dividend growth is good to see, especially with the payments being relatively stable. However, the payment history is relatively short and we wouldn't want to rely on this dividend too much.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. DAIHAN Scientific has impressed us by growing EPS at 16% per year over the past five years. DAIHAN Scientific definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like DAIHAN Scientific's Dividend

Overall, we like to see the dividend staying consistent, and we think DAIHAN Scientific might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 1 warning sign for DAIHAN Scientific that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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