Multi-Chem Limited (SGX:AWZ) stock is about to trade ex-dividend in four 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 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. Thus, you can purchase Multi-Chem's shares before the 30th of August in order to receive the dividend, which the company will pay on the 9th of September.
The company's next dividend payment will be S$0.066 per share, on the back of last year when the company paid a total of S$0.14 to shareholders. Looking at the last 12 months of distributions, Multi-Chem has a trailing yield of approximately 7.0% on its current stock price of SGD1.93. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Multi-Chem has been able to grow its dividends, or if the dividend might be cut.
See our latest analysis for Multi-Chem
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. Multi-Chem paid out more than half (53%) of its earnings last year, which is a regular payout ratio for most companies. 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. It paid out 22% of its free cash flow as dividends last year, which is conservatively low.
It's positive to see that Multi-Chem's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Click here to see how much of its profit Multi-Chem paid out over the last 12 months.
SGX:AWZ Historic Dividend August 25th 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. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Fortunately for readers, Multi-Chem's earnings per share have been growing at 19% a year for the past five years. Multi-Chem is paying out a bit over half its earnings, which suggests the company is striking a balance between reinvesting in growth, and paying dividends. Given the quick rate of earnings per share growth and current level of payout, there may be a chance of further dividend increases in the future.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past 10 years, Multi-Chem has increased its dividend at approximately 12% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.
The Bottom Line
Should investors buy Multi-Chem for the upcoming dividend? Multi-Chem's growing earnings per share and conservative payout ratios make for a decent combination. We also like that it paid out a lower percentage of its cash flow. Multi-Chem looks solid on this analysis overall, and we'd definitely consider investigating it more closely.
On that note, you'll want to research what risks Multi-Chem is facing. In terms of investment risks, we've identified 1 warning sign with Multi-Chem and understanding them should be part of your investment process.
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.
多元化学有限公司 (SGX: AWZ) 股票即将在四天后进行除息交易。除息日是公司记录日期前一个工作日,即公司决定哪些股东有权获得股息的日期。除息日很重要,因为结算过程涉及两个完整的工作日。因此,如果你错过了那个日期,你就不会在记录日期出现在公司的账簿上。因此,您可以在8月30日之前购买Multi-Chem的股票以获得股息,该公司将在9月9日支付股息。
该公司的下一次股息将为每股0.066新元,去年该公司向股东支付了总额为0.14新元。从过去12个月的分配情况来看,Multi-Chem的追踪收益率约为7.0%,而目前的股价为1.93新元。股息是长期持有者投资回报的主要贡献者,但前提是股息必须继续支付。因此,读者应始终检查Multi-Chem是否能够增加股息,或者股息是否可能被削减。
查看我们对 Multi-Chem 的最新分析
股息通常从公司收入中支付,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高。去年,Multi-Chem支付了其收益的一半以上(53%),这是大多数公司的固定派息率。然而,在评估股息可持续性方面,现金流通常比利润更重要,因此我们应始终检查公司是否产生了足够的现金来支付股息。去年,它将其自由现金流的22%作为股息支付,处于保守的低水平。
看到Multi-Chem的股息由利润和现金流共同支付,这是积极的,因为这通常表明股息是可持续的,而较低的派息率通常表明在削减股息之前的安全幅度更大。
点击此处查看Multi-Chem在过去12个月中支付了多少利润。
SGX: AWZ 历史股息 2022 年 8 月 25 日
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,因为当每股收益改善时,更容易增加股息。如果收益下降而公司被迫削减股息,投资者可能会看到他们的投资价值化为乌有。对于读者来说,幸运的是,在过去五年中,Multi-Chem的每股收益一直以每年19%的速度增长。Multi-Chem的收益略高于一半,这表明该公司正在增长再投资和支付股息之间取得平衡。鉴于每股收益的快速增长率和目前的派息水平,未来可能会进一步增加股息。
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。在过去的10年中,Multi-Chem的股息平均每年增加约12%。令人兴奋的是,在过去几年中,每股收益和股息都迅速增长。
底线
投资者是否应该购买 Multi-Chem 来获得即将到来的股息?Multi-Chem不断增长的每股收益和保守的派息率构成了不错的组合。我们也喜欢它支付的现金流比例较低。总体而言,Multi-Chem在这项分析中看起来很不错,我们一定会考虑对其进行更仔细的调查。
关于这一点,你需要研究 Multi-Chem 面临的风险。在投资风险方面, 我们已经发现了 1 个警告标志 使用 Multi-Chem 并了解它们应该是您投资过程的一部分。
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笼统的。 我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。 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,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。简而言之,华尔街在上述任何股票中都没有头寸。