Four Days Left Until Pensonic Holdings Berhad (KLSE:PENSONI) Trades Ex-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 Pensonic Holdings Berhad (KLSE:PENSONI) is about to go ex-dividend in just four days. Ex-dividend means that investors that purchase the stock on or after the 22nd of February will not receive this dividend, which will be paid on the 15th of March.

Pensonic Holdings Berhad's upcoming dividend is RM0.013 a share, following on from the last 12 months, when the company distributed a total of RM0.025 per share to shareholders. Calculating the last year's worth of payments shows that Pensonic Holdings Berhad has a trailing yield of 3.2% on the current share price of MYR0.77. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

Check out our latest analysis for Pensonic Holdings Berhad

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Pensonic Holdings Berhad paid out just 15% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.

Click here to see how much of its profit Pensonic Holdings Berhad paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Pensonic Holdings Berhad's earnings per share have fallen at approximately 9.2% a year over the previous five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past 10 years, Pensonic Holdings Berhad has increased its dividend at approximately 8.9% a year on average.

To Sum It Up

Has Pensonic Holdings Berhad got what it takes to maintain its dividend payments? Pensonic Holdings Berhad's earnings per share are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. Pensonic Holdings Berhad ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.

While it's tempting to invest in Pensonic Holdings Berhad for the dividends alone, you should always be mindful of the risks involved. For instance, we've identified 6 warning signs for Pensonic Holdings Berhad (2 don't sit too well with us) you should be aware of.

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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.
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