Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Safety Godown Company, Limited (HKG:237) is about to go ex-dividend in just 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. Meaning, you will need to purchase Safety Godown Company's shares before the 24th of August to receive the dividend, which will be paid on the 16th of September.
The company's next dividend payment will be HK$0.06 per share, on the back of last year when the company paid a total of HK$0.10 to shareholders. Calculating the last year's worth of payments shows that Safety Godown Company has a trailing yield of 3.2% on the current share price of HK$3.09. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.
See our latest analysis for Safety Godown Company
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. Safety Godown Company reported a loss after tax last year, which means it's paying a dividend despite being unprofitable. While this might be a one-off event, this is unlikely to be sustainable in the long term. With the recent loss, it's important to check if the business generated enough cash to pay its dividend. If cash earnings don't cover the dividend, the company would have to pay dividends out of cash in the bank, or by borrowing money, neither of which is long-term sustainable. What's good is that dividends were well covered by free cash flow, with the company paying out 17% of its cash flow last year.
Click here to see how much of its profit Safety Godown Company paid out over the last 12 months.
SEHK:237 Historic Dividend August 19th 2022
Have Earnings And Dividends Been Growing?
When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Safety Godown Company was unprofitable last year and, unfortunately, the general trend suggests its earnings have been in decline over the last five years, making us wonder if the dividend is sustainable at all.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Safety Godown Company's dividend payments per share have declined at 13% per year on average over the past 10 years, which is uninspiring. 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.
Remember, you can always get a snapshot of Safety Godown Company's financial health, by checking our visualisation of its financial health, here.
To Sum It Up
Should investors buy Safety Godown Company for the upcoming dividend? We're a bit uncomfortable with it paying a dividend while being loss-making. However, we note that the dividend was covered by cash flow. It's not that we think Safety Godown Company is a bad company, but these characteristics don't generally lead to outstanding dividend performance.
So if you're still interested in Safety Godown Company despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. Every company has risks, and we've spotted 2 warning signs for Safety Godown Company (of which 1 is significant!) you should know about.
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.
一些投资者依靠股息来增加他们的财富,如果你是股息侦探中的一员,你可能会感兴趣地知道安防货仓有限公司(HKG:237)即将在短短四天内除息。除息日期发生在记录日期的前一天,也就是股东需要登记在公司账面上才能获得股息的日期。除息日期是一个需要注意的重要日期,因为在这个日期或之后购买股票可能意味着延迟结算,而不会显示在记录日期上。这意味着,你需要在8月24日之前购买安全货仓公司的股票才能获得股息,股息将在9月16日支付。
该公司的下一次派息将为每股0.06港元,而去年该公司向股东支付的股息总额为0.1港元。计算上一年的支付金额显示,安全货仓公司目前的股价为3.09港元,往绩收益率为3.2%。股息是长期持有者投资回报的主要贡献者,但前提是继续支付股息。因此,我们需要检查股息支付是否得到覆盖,以及收益是否在增长。
查看我们对安全仓库公司的最新分析
股息通常从公司收益中支付。如果一家公司支付的股息超过了它的利润,那么股息可能是不可持续的。安全货仓公司去年报告税后亏损,这意味着尽管没有盈利,该公司仍在支付股息。尽管这可能是一次性事件,但从长远来看,这不太可能持续下去。考虑到最近的亏损,重要的是检查企业是否产生了足够的现金来支付股息。如果现金收益不足以支付股息,该公司将不得不用银行现金支付股息,或者通过借款支付股息,这两种方式都不是长期可持续的。值得庆幸的是,自由现金流很好地覆盖了股息,该公司去年支付了17%的现金流。
单击此处查看安全货仓公司在过去12个月中支付了多少利润。
联交所:237历史性红利2022年8月19日
盈利和股息一直在增长吗?
当收益下降时,股利公司就更难分析和安全持有了。如果业务进入低迷,股息被削减,该公司的价值可能会急剧缩水。安全货仓公司去年没有盈利,不幸的是,总的趋势表明,它的收益在过去五年里一直在下降,这让我们怀疑股息是否可持续。
许多投资者将通过评估一家公司的股息支付随着时间的推移发生了多大变化来评估公司的股息表现。安全货仓公司的每股股息支出在过去10年里平均每年下降13%,这是令人沮丧的。看到收益和股息下降从来都不是好事,但至少管理层削减了股息,而不是为了维持股息而潜在地冒着公司健康的风险。
请记住,您随时可以通过查看我们对安全货仓公司财务状况的可视化了解其财务状况的快照,点击此处。
总结一下
投资者应该为即将到来的股息买入安全货仓公司吗?我们对它在亏损的同时支付股息感到有点不舒服。然而,我们注意到股息是由现金流支付的。这并不是说我们认为安全货仓公司是一家糟糕的公司,但这些特点通常不会导致出色的股息表现。
因此,如果你仍然对安全货仓公司感兴趣,尽管它的股息质量很差,你应该很清楚这只股票面临的一些风险。每家公司都有风险,我们已经发现2安全仓库公司的警示标志(其中1个是重要的!)你应该知道。
如果您正在寻找强大的股息支付者,我们建议查看我们精选的顶级股利股票。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。