Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Kato (Hong Kong) Holdings Limited (HKG:2189) is about to trade ex-dividend in the next 3 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled 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 Kato (Hong Kong) Holdings' shares before the 11th of August in order to be eligible for the dividend, which will be paid on the 26th of August.
The company's next dividend payment will be HK$0.025 per share, on the back of last year when the company paid a total of HK$0.05 to shareholders. Last year's total dividend payments show that Kato (Hong Kong) Holdings has a trailing yield of 7.8% on the current share price of HK$0.64. 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 Kato (Hong Kong) Holdings
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Kato (Hong Kong) Holdings paid out a comfortable 45% of its profit last year. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Fortunately, it paid out only 35% of its free cash flow in the past year.
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 Kato (Hong Kong) Holdings paid out over the last 12 months.
SEHK:2189 Historic Dividend August 7th 2022
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. Fortunately for readers, Kato (Hong Kong) Holdings's earnings per share have been growing at 17% a year for the past five years. Earnings per share have been growing rapidly and the company is retaining a majority of its earnings within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last three years, Kato (Hong Kong) Holdings has lifted its dividend by approximately 7.7% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
The Bottom Line
Is Kato (Hong Kong) Holdings worth buying for its dividend? Kato (Hong Kong) Holdings has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. It's a promising combination that should mark this company worthy of closer attention.
So while Kato (Hong Kong) Holdings looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Our analysis shows 2 warning signs for Kato (Hong Kong) Holdings and you should be aware of these before buying any shares.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
普通读者会知道我们喜欢 Simply Wall St 的分红,这就是为什么看到它令人兴奋的原因 加藤(香港)控股有限公司 (HKG: 2189) 即将在接下来的3天内进行除息交易。除息日是公司记录日期之前的一个工作日,该日期是公司确定哪些股东有权获得股息的日期。除息日之所以如此,是因为每当买入或卖出股票时,交易至少需要两个工作日才能结算。换句话说,投资者可以在8月11日之前购买加藤(香港)控股的股票,以便有资格获得股息,股息将于8月26日支付。
该公司的下一次股息将为每股0.025港元,比去年公司向股东共支付了0.05港元。去年的股息支付总额显示,加藤(香港)控股的后续收益率为7.8%,而目前的股价为0.64港元。股息是长期持有者投资回报的主要贡献者,但前提是必须继续支付股息。这就是为什么我们应该经常检查股息支付是否可持续,以及公司是否在增长。
查看我们对加藤(香港)控股的最新分析
股息通常从公司利润中支付,因此,如果公司支付的股息超过其收入,则其股息被削减的风险通常更大。加藤(香港)控股公司去年支付了可观的45%利润。也就是说,即使是利润丰厚的公司有时也可能无法产生足够的现金来支付股息,这就是为什么我们应该经常检查股息是否由现金流支付。幸运的是,在过去的一年中,它仅支付了自由现金流的35%。
令人鼓舞的是,股息由利润和现金流共同支付。这通常表明,只要收益不急剧下降,股息是可持续的。
点击此处查看加藤(香港)控股公司在过去12个月中支付了多少利润。
香港交易所:2189 2022 年 8 月 7 日历史股息
收益和股息一直在增长吗?
增长前景强劲的企业通常是最好的股息支付者,因为每股收益改善时更容易增加股息。投资者喜欢分红,因此,如果收益下降而股息减少,预计股票将同时被大量抛售。对于读者来说,幸运的是,加藤(香港)控股的每股收益在过去五年中一直以每年17%的速度增长。每股收益一直在快速增长,该公司将大部分收益保留在业务中。从股息的角度来看,正在进行大量再投资的快速增长的企业很有吸引力,尤其是因为它们通常可以在以后提高派息率。
衡量公司股息前景的另一种关键方法是衡量其历史股息增长率。在过去三年中,加藤(香港)控股平均每年将其股息提高约7.7%。令人鼓舞的是,该公司在收益增长的同时增加了股息,这表明企业对奖励股东至少有一定兴趣。
底线
加藤(香港)控股的股息值得买入吗?加藤(香港)控股公司的收益一直在快速增长,派息率也相对较低,这意味着它正在对其业务进行大量再投资;这是英镑合并。这是一个很有前途的组合,应该标志着这家公司值得密切关注。
因此,尽管从股息的角度来看,加藤(香港)控股公司看起来不错,但随时了解该股所涉及的风险总是值得的。我们的分析显示 加藤(香港)控股的两个警告信号 在购买任何股票之前,您应该意识到这些。
如果您在市场上寻找实力雄厚的股息支付者,我们建议 查看我们精选的顶级股息股票。
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Simply Wall St 的这篇文章本质上是一般性的。 我们仅使用公正的方法提供基于历史数据和分析师预测的评论,我们的文章无意提供财务建议。 它不构成买入或卖出任何股票的建议,也没有考虑您的目标或财务状况。我们的目标是为您提供由基本面数据驱动的长期重点分析。请注意,我们的分析可能未将最新的价格敏感型公司公告或定性材料考虑在内。简而言之,华尔街对上述任何股票都没有头寸。