KOLMAR BNH Co.,Ltd. (KOSDAQ:200130) Goes Ex-Dividend Soon
It looks like KOLMAR BNH Co.,Ltd. (KOSDAQ:200130) is about to go ex-dividend in the next 3 days. Typically, the ex-dividend date is two business days 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 can take two business days or more to settle. Therefore, if you purchase KOLMAR BNHLtd's shares on or after the 28th of August, you won't be eligible to receive the dividend, when it is paid on the .
The company's next dividend payment will be ₩60.00 per share, on the back of last year when the company paid a total of ₩300 to shareholders. Last year's total dividend payments show that KOLMAR BNHLtd has a trailing yield of 3.3% on the current share price of ₩9230.00. If you buy this business for its dividend, you should have an idea of whether KOLMAR BNHLtd's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.
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. KOLMAR BNHLtd paid out just 13% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. With the recent loss, it's important to check if the business generated enough cash to pay its dividend. If KOLMAR BNHLtd didn't generate enough cash to pay the dividend, then it must have either paid from cash in the bank or by borrowing money, neither of which is sustainable in the long term. Thankfully its dividend payments took up just 37% of the free cash flow it generated, which is a comfortable payout ratio.
View our latest analysis for KOLMAR BNHLtd
Click here to see how much of its profit KOLMAR BNHLtd paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
When earnings decline, dividend companies become much harder to analyse and own safely. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. KOLMAR BNHLtd reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. KOLMAR BNHLtd has delivered 8.2% dividend growth per year on average over the past eight years.
We update our analysis on KOLMAR BNHLtd every 24 hours, so you can always get the latest insights on its financial health, here.
Final Takeaway
Is KOLMAR BNHLtd worth buying for its dividend? It's hard to get used to KOLMAR BNHLtd paying a dividend despite reporting a loss over the past year. At least the dividend was covered by free cash flow, however. Overall, it's hard to get excited about KOLMAR BNHLtd from a dividend perspective.
So while KOLMAR BNHLtd looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. In terms of investment risks, we've identified 1 warning sign with KOLMAR BNHLtd and understanding them should be part of your investment process.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
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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.