Samsung Electronics (KRX:005930) Is Paying Out A Dividend Of ₩361.00

Samsung Electronics Co., Ltd.'s (KRX:005930) investors are due to receive a payment of ₩361.00 per share on 21st of April. This means the annual payment is 2.7% of the current stock price, which is above the average for the industry.

See our latest analysis for Samsung Electronics

Samsung Electronics' 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, Samsung Electronics' earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

The next year is set to see EPS grow by 31.3%. Assuming the dividend continues along recent trends, we think the payout ratio could be 29% by next year, which is in a pretty sustainable range.

Samsung Electronics Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2014, the annual payment back then was ₩286.00, compared to the most recent full-year payment of ₩1444.00. This implies that the company grew its distributions at a yearly rate of about 18% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

The Dividend's Growth Prospects Are Limited

Investors could be attracted to the stock based on the quality of its payment history. Earnings have grown at around 3.3% a year for the past five years, which isn't massive but still better than seeing them shrink. While growth may be thin on the ground, Samsung Electronics could always pay out a higher proportion of earnings to increase shareholder returns.

Samsung Electronics Looks Like A Great Dividend Stock

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 34 analysts we track are forecasting for Samsung Electronics for free with public analyst estimates for the company. Is Samsung Electronics not quite the opportunity you were looking for? Why not check out our selection of top 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.