There's A Lot To Like About AzureWave Technologies' (TWSE:3694) Upcoming NT$1.00028 Dividend

AzureWave Technologies, Inc. (TWSE:3694) is about to trade ex-dividend in the next four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order 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. In other words, investors can purchase AzureWave Technologies' shares before the 5th of August in order to be eligible for the dividend, which will be paid on the 23rd of August.

The upcoming dividend for AzureWave Technologies is NT$1.00028 per share. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether AzureWave Technologies has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for AzureWave Technologies

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. That's why it's good to see AzureWave Technologies paying out a modest 43% of its earnings.

Click here to see how much of its profit AzureWave Technologies 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. 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 AzureWave Technologies has grown its earnings rapidly, up 42% a year for the past five years. AzureWave Technologies is paying out less than half its earnings and cash flow, while simultaneously growing earnings per share at a rapid clip. This is a very favourable combination that can often lead to the dividend multiplying over the long term, if earnings grow and the company pays out a higher percentage of its earnings.

This is AzureWave Technologies's first year of paying a regular dividend, so it doesn't have much of a history yet to compare to.

The Bottom Line

Has AzureWave Technologies got what it takes to maintain its dividend payments? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. Overall, AzureWave Technologies looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

While it's tempting to invest in AzureWave Technologies for the dividends alone, you should always be mindful of the risks involved. To help with this, we've discovered 1 warning sign for AzureWave Technologies that you should be aware of before investing in their shares.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.

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