There's A Lot To Like About Tycoons Group EnterpriseLtd's (TWSE:2022) Upcoming NT$0.20 Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Tycoons Group Enterprise Co.,Ltd. (TWSE:2022) is about to trade ex-dividend in the next three days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the 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 Tycoons Group EnterpriseLtd's shares before the 27th of June in order to receive the dividend, which the company will pay on the 22nd of July.

The upcoming dividend for Tycoons Group EnterpriseLtd is NT$0.20 per share. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.

See our latest analysis for Tycoons Group EnterpriseLtd

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Tycoons Group EnterpriseLtd paid out a comfortable 33% of its profit last year.

Click here to see how much of its profit Tycoons Group EnterpriseLtd paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. For this reason, we're glad to see Tycoons Group EnterpriseLtd's earnings per share have risen 14% per annum over the last five years. The company has managed to grow earnings at a rapid rate, while reinvesting most of the profits within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later.

This is Tycoons Group EnterpriseLtd's first year of paying a regular dividend, which is exciting for shareholders - but it does mean there's no dividend history to examine.

The Bottom Line

Is Tycoons Group EnterpriseLtd an attractive dividend stock, or better left on the shelf? Companies like Tycoons Group EnterpriseLtd that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. Tycoons Group EnterpriseLtd 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.

On that note, you'll want to research what risks Tycoons Group EnterpriseLtd is facing. Our analysis shows 1 warning sign for Tycoons Group EnterpriseLtd and you should be aware of this before buying any shares.

If you're in the market for strong dividend payers, we recommend checking 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com