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.
看起来像是嘉华国际控股有限公司(HKG:173)即将在未来三天内除息。除息日期通常被设定为记录日期之前的一个工作日,也就是你必须作为股东出现在公司账簿上才能获得股息的截止日期。除息日期是重要的,因为每当买卖一只股票时,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9月9日之前购买嘉华国际控股的股票,以便有资格获得10月26日支付的股息。
该公司下一次派息将为每股0.07港元。去年,该公司总共向股东派发了0.21港元。根据上一年的支付金额,嘉华国际控股的往绩收益率为7.2%,当前股价为2.92港元。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。
查看我们对嘉华国际控股的最新分析
股息通常从公司利润中支付,因此,如果一家公司支付的股息超过了它的收入,那么它的股息通常被削减的风险更大。嘉华国际控股去年仅支付了其利润的18%,我们认为这是一个保守的低水平,并为意外情况留出了足够的余地。一个有用的次要检查可以是评估嘉华国际控股是否产生了足够的自由现金流来支付股息。它去年支付了自由现金流的8.9%作为股息,这是保守的低水平。
看到嘉华国际控股的股息由利润和现金流覆盖,这是积极的,因为这通常是股息可持续的迹象,而较低的派息率通常意味着在股息削减之前有更大的安全边际。
点击这里查看嘉华国际控股在过去12个月中支付了多少利润。
联交所:173历史性红利2022年9月5日
盈利和股息一直在增长吗?
收益持平的股票仍然可以成为有吸引力的股息支付者,但重要的是,在股息可持续性方面,你的方法要更加保守,并要求更大的安全边际。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。看到嘉华国际控股公司过去五年的收益实际上持平,这并不令人鼓舞。当然,这比眼睁睁看着它们下跌要好,但从长远来看,所有最好的红利股票都能够大幅提高每股收益。经济增长一直乏力。然而,由于其75%以上的收益留在了业务上,有足够的空间再投资于增长或提高派息率--这两种方式都可能增加股息。
衡量一家公司股息前景的另一个关键方法是衡量其历史股息增长率。根据过去10年的股息支付,嘉华国际控股公司的股息平均每年增加2.8%。
最终外卖
从分红的角度来看,投资者应该买入还是避开嘉华国际控股?在这段时间里,该公司的每股收益几乎没有增长,但至少它支付的股息占收益和现金流的比例相当低。这可能表明,管理层正在对未来的增长机会进行再投资。一般来说,我们希望看到较低的派息率和强劲的每股收益增长,但嘉华国际控股有限公司已经走到了一半。从整体上看,嘉华国际控股有限公司的这一分析是可靠的,我们肯定会考虑更仔细地调查它。
因此,尽管嘉华国际控股从股息角度看起来不错,但了解这只股票所涉及的风险始终是值得的。我们的分析显示嘉华国际控股有限公司的2个警告标志我们强烈建议你在投资公司之前先看一看。
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。