Here's What We Like About Intelligent Digital Integrated Security's (KOSDAQ:143160) Upcoming Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Intelligent Digital Integrated Security Co., Ltd. (KOSDAQ:143160) is about to go ex-dividend in just 3 days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. In other words, investors can purchase Intelligent Digital Integrated Security's shares before the 27th of December in order to be eligible for the dividend, which will be paid on the 14th of April.

The company's upcoming dividend is ₩300.00 a share, following on from the last 12 months, when the company distributed a total of ₩300 per share to shareholders. Looking at the last 12 months of distributions, Intelligent Digital Integrated Security has a trailing yield of approximately 1.9% on its current stock price of ₩15520.00. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Intelligent Digital Integrated Security has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Intelligent Digital Integrated Security

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Intelligent Digital Integrated Security is paying out just 19% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events. A useful secondary check can be to evaluate whether Intelligent Digital Integrated Security generated enough free cash flow to afford its dividend. The good news is it paid out just 13% of its free cash flow in the 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 how much of its profit Intelligent Digital Integrated Security paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That's why it's comforting to see Intelligent Digital Integrated Security's earnings have been skyrocketing, up 31% per annum for the past five years. Intelligent Digital Integrated Security looks like a real growth company, with earnings per share growing at a cracking pace and the company reinvesting most of its profits in the business.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Intelligent Digital Integrated Security's dividend payments are effectively flat on where they were nine years ago.

The Bottom Line

From a dividend perspective, should investors buy or avoid Intelligent Digital Integrated Security? Intelligent Digital Integrated Security has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. It's a promising combination that should mark this company worthy of closer attention.

Curious about whether Intelligent Digital Integrated Security has been able to consistently generate growth? Here's a chart of its historical revenue and earnings growth.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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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.