Intelligent Digital Integrated Security (KOSDAQ:143160) Has Announced A Dividend Of ₩300.00

Intelligent Digital Integrated Security Co., Ltd. (KOSDAQ:143160) has announced that it will pay a dividend of ₩300.00 per share on the 13th of April. This means the annual payment is 1.7% of the current stock price, which is above the average for the industry.

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Intelligent Digital Integrated Security's Projected Earnings Seem Likely To Cover Future Distributions

A big dividend yield for a few years doesn't mean much if it can't be sustained. Prior to this announcement, Intelligent Digital Integrated Security's dividend was only 31% of earnings, however it was paying out 135% of free cash flows. A cash payout ratio this high could put the dividend under pressure and force the company to reduce it in the future if it were to run into tough times.

Unless the company can turn things around, EPS could fall by 3.4% over the next year. Assuming the dividend continues along recent trends, we believe the payout ratio could be 31%, which we are pretty comfortable with and we think is feasible on an earnings basis.

See our latest analysis for Intelligent Digital Integrated Security

Intelligent Digital Integrated Security Has A Solid Track Record

The company has an extended history of paying stable dividends. The last annual payment of ₩300.00 was flat on the annual payment from10 years ago. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.

The Dividend's Growth Prospects Are Limited

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. However, initial appearances might be deceiving. Intelligent Digital Integrated Security has seen earnings per share falling at 3.4% per year over the last five years. If earnings continue declining, the company may have to make the difficult choice of reducing the dividend or even stopping it completely - the opposite of dividend growth.

In Summary

In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Intelligent Digital Integrated Security's payments, as there could be some issues with sustaining them into the future. While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. This company is not in the top tier of income providing stocks.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. To that end, Intelligent Digital Integrated Security has 4 warning signs (and 1 which is significant) we think you should know about. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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