Y.S.P. Southeast Asia Holding Berhad (KLSE:YSPSAH) Goes Ex-Dividend Soon

Readers hoping to buy Y.S.P. Southeast Asia Holding Berhad (KLSE:YSPSAH) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible 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. Thus, you can purchase Y.S.P. Southeast Asia Holding Berhad's shares before the 25th of June in order to receive the dividend, which the company will pay on the 25th of July.

The company's next dividend payment will be RM00.11 per share, on the back of last year when the company paid a total of RM0.11 to shareholders. Calculating the last year's worth of payments shows that Y.S.P. Southeast Asia Holding Berhad has a trailing yield of 4.9% on the current share price of RM02.25. 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! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

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Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Y.S.P. Southeast Asia Holding Berhad paid out more than half (65%) of its earnings last year, which is a regular payout ratio for most companies. A useful secondary check can be to evaluate whether Y.S.P. Southeast Asia Holding Berhad generated enough free cash flow to afford its dividend. It distributed 29% of its free cash flow as dividends, a comfortable payout level for most companies.

It's positive to see that Y.S.P. Southeast Asia Holding Berhad's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

Check out our latest analysis for Y.S.P. Southeast Asia Holding Berhad

Click here to see how much of its profit Y.S.P. Southeast Asia Holding Berhad paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're not enthused to see that Y.S.P. Southeast Asia Holding Berhad's earnings per share have remained effectively flat over the past five years. We'd take that over an earnings decline any day, but in the long run, the best dividend stocks all grow their earnings per share. Earnings growth has been slim and the company is paying out more than half of its earnings. While there is some room to both increase the payout ratio and reinvest in the business, generally the higher a payout ratio goes, the lower a company's prospects for future growth.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, Y.S.P. Southeast Asia Holding Berhad has lifted its dividend by approximately 5.4% a year on average.

To Sum It Up

From a dividend perspective, should investors buy or avoid Y.S.P. Southeast Asia Holding Berhad? It's unfortunate that earnings per share have not grown, and we'd note that Y.S.P. Southeast Asia Holding Berhad is paying out lower percentage of its cashflow than its profit, but overall the dividend looks well covered by earnings. To summarise, Y.S.P. Southeast Asia Holding Berhad looks okay on this analysis, although it doesn't appear a stand-out opportunity.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. To help with this, we've discovered 2 warning signs for Y.S.P. Southeast Asia Holding Berhad that you should be aware of before investing in their shares.

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.