Taiwan Printed Circuit Board Techvest Co.,Ltd. (TWSE:8213) Is About To Go Ex-Dividend, And It Pays A 2.5% Yield

Taiwan Printed Circuit Board Techvest Co.,Ltd. (TWSE:8213) stock is about to trade ex-dividend in three days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Meaning, you will need to purchase Taiwan Printed Circuit Board TechvestLtd's shares before the 4th of July to receive the dividend, which will be paid on the 26th of July.

The company's upcoming dividend is NT$1.00 a share, following on from the last 12 months, when the company distributed a total of NT$1.00 per share to shareholders. Based on the last year's worth of payments, Taiwan Printed Circuit Board TechvestLtd has a trailing yield of 2.5% on the current stock price of NT$39.30. If you buy this business for its dividend, you should have an idea of whether Taiwan Printed Circuit Board TechvestLtd's dividend is reliable and sustainable. As a result, readers should always check whether Taiwan Printed Circuit Board TechvestLtd has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Taiwan Printed Circuit Board TechvestLtd

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. Taiwan Printed Circuit Board TechvestLtd paid out a comfortable 26% of its profit last year. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Over the last year, it paid out more than three-quarters (87%) of its free cash flow generated, which is fairly high and may be starting to limit reinvestment in the business.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

Click here to see how much of its profit Taiwan Printed Circuit Board TechvestLtd paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Businesses with shrinking earnings are tricky from a dividend perspective. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's not ideal to see Taiwan Printed Circuit Board TechvestLtd's earnings per share have been shrinking at 2.7% a year over the previous five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Taiwan Printed Circuit Board TechvestLtd has seen its dividend decline 10% per annum on average over the past 10 years, which is not great to see. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it.

Final Takeaway

Is Taiwan Printed Circuit Board TechvestLtd worth buying for its dividend? Its earnings per share have been declining meaningfully, although it is paying out less than half its income and more than half its cash flow as dividends. Neither payout ratio appears an immediate concern, but we're concerned about the earnings. In summary, it's hard to get excited about Taiwan Printed Circuit Board TechvestLtd from a dividend perspective.

However if you're still interested in Taiwan Printed Circuit Board TechvestLtd as a potential investment, you should definitely consider some of the risks involved with Taiwan Printed Circuit Board TechvestLtd. Every company has risks, and we've spotted 1 warning sign for Taiwan Printed Circuit Board TechvestLtd you should know about.

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.

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