Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Tian Teck Land Limited (HKG:266) is about to trade ex-dividend in the next four days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. 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. Meaning, you will need to purchase Tian Teck Land's shares before the 12th of December to receive the dividend, which will be paid on the 12th of January.
The company's next dividend payment will be HK$0.04 per share. Last year, in total, the company distributed HK$0.08 to shareholders. Calculating the last year's worth of payments shows that Tian Teck Land has a trailing yield of 2.3% on the current share price of HK$3.45. 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 Tian Teck Land has been able to grow its dividends, or if the dividend might be cut.
View our latest analysis for Tian Teck Land
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. Tian Teck Land paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run. Given that the company reported a loss last year, we now need to see if it generated enough free cash flow to fund the 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. Fortunately, it paid out only 40% of its free cash flow in the past year.
Click here to see how much of its profit Tian Teck Land paid out over the last 12 months.
SEHK:266 Historic Dividend December 7th 2022
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Tian Teck Land 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. Tian Teck Land has seen its dividend decline 15% per annum on average over the past 10 years, which is not great to see. While it's not great that earnings and dividends per share have fallen in recent years, we're encouraged by the fact that management has trimmed the dividend rather than risk over-committing the company in a risky attempt to maintain yields to shareholders.
Remember, you can always get a snapshot of Tian Teck Land's financial health, by checking our visualisation of its financial health, here.
Final Takeaway
Is Tian Teck Land worth buying for its dividend? It's hard to get used to Tian Teck Land paying a dividend despite reporting a loss over the past year. At least the dividend was covered by free cash flow, however. Bottom line: Tian Teck Land has some unfortunate characteristics that we think could lead to sub-optimal outcomes for dividend investors.
With that being said, if you're still considering Tian Teck Land as an investment, you'll find it beneficial to know what risks this stock is facing. Every company has risks, and we've spotted 1 warning sign for Tian Teck Land you should know about.
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.
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 天德置地有限公司 (HKG: 266) 即将在未来四天内进行除息交易。除息日是记录日期前一个工作日,这是股东在公司账簿上有资格获得股息支付的截止日期。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。这意味着,您需要在12月12日之前购买Tian Teck Land的股票才能获得股息,股息将于1月12日支付。
该公司的下一次股息将为每股0.04港元。去年,该公司总共向股东分配了0.08港元。计算去年的付款价值表明,Tian Teck Land的后续收益率为2.3%,而目前的股价为3.45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。因此,读者应经常检查Tian Teck Land是否能够增加股息,或者股息是否可能被削减。
查看我们对 Tian Teck Land 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。尽管没有盈利,但Tian Teck Land去年还是支付了股息。这可能是一次性事件,但从长远来看,这不是一种可持续的状况。鉴于该公司去年报告了亏损,我们现在需要看看它是否产生了足够的自由现金流来为分红提供资金。如果现金收益不能支付股息,公司将不得不用银行现金或借钱支付股息,这两种情况都不是长期可持续的。幸运的是,在过去的一年中,它仅支付了自由现金流的40%。
点击此处查看Tian Teck Land在过去12个月中支付了多少利润。
香港交易所:266 2022 年 12 月 7 日历史股息
收益和股息一直在增长吗?
从股息的角度来看,收益萎缩的企业很棘手。如果收益下降而公司被迫削减股息,投资者可能会眼睁睁看着他们的投资价值烟消云散。Tian Teck Land去年报告了亏损,总体趋势表明其收益近年来也一直在下降,这使我们怀疑分红是否处于危险之中。
许多投资者将通过评估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。在过去的10年中,Tian Teck Land的股息平均每年下降15%,这并不好看。尽管近年来每股收益和股息下降并不是一件好事,但令我们感到鼓舞的是,管理层削减了股息,而不是冒险过度投入公司以维持股东收益率。
请记住,在这里查看我们对Tian Teck Land财务状况的可视化,您可以随时了解其财务状况。
最后的外卖
Tian Teck Land 值得购买以获得分红吗?尽管Tian Teck Land在过去一年中报告了亏损,但很难习惯支付股息。但是,至少股息由自由现金流支付。底线:Tian Teck Land有一些不幸的特征,我们认为这些特征可能会给股息投资者带来不理想的结果。
话虽如此,如果你还在考虑将Tian Teck Land作为一项投资,你会发现了解这只股票面临的风险是有益的。每家公司都有风险,我们已经发现 Tian Teck Land 有 1 个警告标志 你应该知道。
通常,我们不建议只买入你看到的第一只股息股票。这里是 一份精选的股息支付强劲的有趣股票清单。
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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。