It looks like K. Wah International Holdings Limited (HKG:173) is about to go ex-dividend in the next three days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the 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 K. Wah International Holdings' shares before the 9th of September in order to be eligible for the dividend, which will be paid on the 26th of October.
The company's next dividend payment will be HK$0.07 per share. Last year, in total, the company distributed HK$0.21 to shareholders. Based on the last year's worth of payments, K. Wah International Holdings has a trailing yield of 7.2% on the current stock price of HK$2.92. 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 K. Wah International 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. K. Wah International Holdings paid out just 18% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances. A useful secondary check can be to evaluate whether K. Wah International Holdings generated enough free cash flow to afford its dividend. It paid out 8.9% of its free cash flow as dividends last year, which is conservatively low.
It's positive to see that K. Wah International Holdings'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 K. Wah International Holdings paid out over the last 12 months.
SEHK:173 Historic Dividend September 5th 2022
Have Earnings And Dividends Been Growing?
Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. It's not encouraging to see that K. Wah International Holdings's earnings are effectively flat over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share. Growth has been anaemic. Yet with more than 75% of its earnings being kept in the business, there is ample room to reinvest in growth or lift the payout ratio - either of which could increase the dividend.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. K. Wah International Holdings has delivered an average of 2.8% per year annual increase in its dividend, based on the past 10 years of dividend payments.
Final Takeaway
From a dividend perspective, should investors buy or avoid K. Wah International Holdings? The company has barely grown earnings per share over this time, but at least it's paying out a decently low percentage of its earnings and cashflow as dividends. This could suggest management is reinvesting in future growth opportunities. Generally we like to see both low payout ratios and strong earnings per share growth, but K. Wah International Holdings is halfway there. K. Wah International Holdings looks solid on this analysis overall, and we'd definitely consider investigating it more closely.
So while K. Wah International 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 K. Wah International Holdings that we strongly recommend you have a look at before investing in the company.
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.
看起來像是嘉華國際控股有限公司(HKG:173)即將在未來三天內除息。除息日期通常被設定為記錄日期之前的一個工作日,也就是你必須作為股東出現在公司賬簿上才能獲得股息的截止日期。除息日期是重要的,因為每當買賣一隻股票時,交易至少需要兩個工作日才能結算。換句話説,投資者可以在9月9日之前購買嘉華國際控股的股票,以便有資格獲得10月26日支付的股息。
該公司下一次派息將為每股0.07港元。去年,該公司總共向股東派發了0.21港元。根據上一年的支付金額,嘉華國際控股的往績收益率為7.2%,當前股價為2.92港元。股息是長期持有者投資回報的主要貢獻者,但前提是繼續支付股息。因此,我們需要檢查股息支付是否得到覆蓋,以及收益是否在增長。
查看我們對嘉華國際控股的最新分析
股息通常從公司利潤中支付,因此,如果一家公司支付的股息超過了它的收入,那麼它的股息通常被削減的風險更大。嘉華國際控股去年僅支付了其利潤的18%,我們認為這是一個保守的低水平,併為意外情況留出了足夠的餘地。一個有用的次要檢查可以是評估嘉華國際控股是否產生了足夠的自由現金流來支付股息。它去年支付了自由現金流的8.9%作為股息,這是保守的低水平。
看到嘉華國際控股的股息由利潤和現金流覆蓋,這是積極的,因為這通常是股息可持續的跡象,而較低的派息率通常意味着在股息削減之前有更大的安全邊際。
點擊這裏查看嘉華國際控股在過去12個月中支付了多少利潤。
聯交所:173歷史性紅利2022年9月5日
盈利和股息一直在增長嗎?
收益持平的股票仍然可以成為有吸引力的股息支付者,但重要的是,在股息可持續性方面,你的方法要更加保守,並要求更大的安全邊際。如果業務進入低迷,股息被削減,該公司的價值可能會急劇縮水。看到嘉華國際控股公司過去五年的收益實際上持平,這並不令人鼓舞。當然,這比眼睜睜看着它們下跌要好,但從長遠來看,所有最好的紅利股票都能夠大幅提高每股收益。經濟增長一直乏力。然而,由於其75%以上的收益留在了業務上,有足夠的空間再投資於增長或提高派息率--這兩種方式都可能增加股息。
衡量一家公司股息前景的另一個關鍵方法是衡量其歷史股息增長率。根據過去10年的股息支付,嘉華國際控股公司的股息平均每年增加2.8%。
最終外賣
從分紅的角度來看,投資者應該買入還是避開嘉華國際控股?在這段時間裏,該公司的每股收益幾乎沒有增長,但至少它支付的股息佔收益和現金流的比例相當低。這可能表明,管理層正在對未來的增長機會進行再投資。一般來説,我們希望看到較低的派息率和強勁的每股收益增長,但嘉華國際控股有限公司已經走到了一半。從整體上看,嘉華國際控股有限公司的這一分析是可靠的,我們肯定會考慮更仔細地調查它。
因此,儘管嘉華國際控股從股息角度看起來不錯,但瞭解這隻股票所涉及的風險始終是值得的。我們的分析顯示嘉華國際控股有限公司的2個警告標誌我們強烈建議你在投資公司之前先看一看。
如果您正在尋找強大的股息支付者,我們建議查看我們精選的頂級股利股票。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。