Tidehold Development Co., Ltd. (TWSE:9902) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Tidehold Development Co., Ltd. (TWSE:9902) stock is about to trade ex-dividend in 4 days. Typically, the ex-dividend date is one business day 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 of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. In other words, investors can purchase Tidehold Development's shares before the 2nd of July in order to be eligible for the dividend, which will be paid on the 1st of August.

The company's next dividend payment will be NT$0.30 per share. Last year, in total, the company distributed NT$0.30 to shareholders. Calculating the last year's worth of payments shows that Tidehold Development has a trailing yield of 1.8% on the current share price of NT$16.30. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. 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 Tidehold Development

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Tidehold Development paid out 51% of its earnings to investors last year, a normal payout level for most businesses.

Click here to see how much of its profit Tidehold Development paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. 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 Tidehold Development has grown its earnings rapidly, up 37% a year for the past five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last eight years, Tidehold Development has lifted its dividend by approximately 5.2% a year on average. Earnings per share have been growing much quicker than dividends, potentially because Tidehold Development is keeping back more of its profits to grow the business.

To Sum It Up

Is Tidehold Development an attractive dividend stock, or better left on the shelf? Earnings per share are growing at an attractive rate, and Tidehold Development is paying out a bit over half its profits. Overall, Tidehold Development looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

So while Tidehold Development looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. For example, Tidehold Development has 5 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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