Jia Wei Lifestyle, Inc. (TPE:3557) Passed Our Checks, And It's About To Pay A NT$2.35 Dividend

It looks like Jia Wei Lifestyle, Inc. (TPE:3557) is about to go ex-dividend in the next 4 days. Investors can purchase shares before the 21st of December in order to be eligible for this dividend, which will be paid on the 25th of January.

Jia Wei Lifestyle's upcoming dividend is NT$2.35 a share, following on from the last 12 months, when the company distributed a total of NT$4.70 per share to shareholders. Looking at the last 12 months of distributions, Jia Wei Lifestyle has a trailing yield of approximately 4.3% on its current stock price of NT$108.5. If you buy this business for its dividend, you should have an idea of whether Jia Wei Lifestyle's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.

See our latest analysis for Jia Wei Lifestyle

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Jia Wei Lifestyle has a low and conservative payout ratio of just 24% of its income after tax.

Click here to see how much of its profit Jia Wei Lifestyle paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's encouraging to see Jia Wei Lifestyle has grown its earnings rapidly, up 69% a year for the past five years. With earnings per share growing rapidly and the company sensibly reinvesting almost all of its profits within the business, Jia Wei Lifestyle looks like a promising growth company.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, Jia Wei Lifestyle has increased its dividend at approximately 31% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

Final Takeaway

Is Jia Wei Lifestyle an attractive dividend stock, or better left on the shelf? Companies like Jia Wei Lifestyle that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. This strategy can add significant value to shareholders over the long term - as long as it's done without issuing too many new shares. Jia Wei Lifestyle 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.

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 3 warning signs for Jia Wei Lifestyle that you should be aware of before investing in their shares.

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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