It looks like OUE Limited (SGX:LJ3) is about to go ex-dividend in the next four 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 important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Thus, you can purchase OUE's shares before the 14th of September in order to receive the dividend, which the company will pay on the 29th of September.
The company's next dividend payment will be S$0.01 per share, and in the last 12 months, the company paid a total of S$0.02 per share. Calculating the last year's worth of payments shows that OUE has a trailing yield of 1.5% on the current share price of SGD1.36. 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.
View our latest analysis for OUE
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. OUE has a low and conservative payout ratio of just 12% of its income after tax. A useful secondary check can be to evaluate whether OUE generated enough free cash flow to afford its dividend. Luckily it paid out just 18% of its free cash flow last year.
It's positive to see that OUE'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 OUE paid out over the last 12 months.
SGX:LJ3 Historic Dividend September 9th 2022
Have Earnings And Dividends Been Growing?
Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're not enthused to see that OUE's earnings per share have remained 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. OUE is retaining more than three-quarters of its earnings and has a history of generating some growth in earnings. We think this is a reasonable combination.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. OUE's dividend payments per share have declined at 6.7% per year on average over the past 10 years, which is uninspiring.
To Sum It Up
Should investors buy OUE for the upcoming dividend? Earnings per share have been flat over this time, but we're intrigued to see that OUE is paying out less than half its earnings and cash flow as dividends. This is interesting for a few reasons, as it suggests management may be reinvesting heavily in the business, but it also provides room to increase the dividend in time. Generally we like to see both low payout ratios and strong earnings per share growth, but OUE is halfway there. OUE looks solid on this analysis overall, and we'd definitely consider investigating it more closely.
In light of that, while OUE has an appealing dividend, it's worth knowing the risks involved with this stock. In terms of investment risks, we've identified 2 warning signs with OUE and understanding them should be part of your investment process.
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.
看起来像是OUE有限公司(新加坡证券交易所股票代码:LJ3)即将在未来四天内除息。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。除息日期很重要,因为股票的任何交易都需要在记录日期之前结算,才有资格获得股息。因此,你可以在9月14日之前购买OUE的股票,以获得公司将在9月29日支付的股息。
该公司的下一次股息支付将为每股0.01新元,在过去12个月中,该公司总共支付了每股0.02新元。计算去年的支付价值显示,OUE在当前股价1.36新元的基础上有1.5%的往绩收益率。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OUE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。OUE的派息率很低,而且很保守,仅占其税后收入的12%。一个有用的次要检查可以是评估OUE是否产生了足够的自由现金流来支付股息。幸运的是,它去年只支付了自由现金流的18%。
看到OUE的股息同时由利润和现金流覆盖是积极的,因为这通常是股息可持续的迹象,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。
单击此处查看OUE在过去12个月中支付了多少利润。
新交所:LJ3历史性股息2022年9月9日
盈利和股息一直在增长吗?
盈利没有增长的公司仍然有价值,但如果公司看起来将难以增长,评估股息的可持续性就更重要了。如果收益降幅足够大,该公司可能会被迫削减股息。考虑到这一点,我们并不热衷于看到OUE的每股收益在过去五年里实际上持平。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。OUE保留了超过四分之三的收益,并有创造一定收益增长的历史。我们认为这是一个合理的组合。
大多数投资者评估一家公司的股息前景的主要方式是检查历史上的股息增长率。过去10年,OUE的每股股息支付平均每年下降6.7%,这一点令人沮丧。
总结一下
投资者应该为即将到来的股息买入OUE吗?在这段时间里,每股收益持平,但我们很感兴趣地看到,OUE支付的股息不到其收益和现金流的一半。这很有趣,有几个原因,因为它表明管理层可能正在对业务进行大量再投资,但它也提供了及时增加股息的空间。一般来说,我们希望看到低派息率和强劲的每股收益增长,但OUE已经实现了一半。总的来说,OUE在这一分析上看起来很可靠,我们肯定会考虑更仔细地调查它。
有鉴于此,虽然OUE拥有诱人的股息,但了解这只股票所涉及的风险是值得的。在投资风险方面,我们已经确定了两个警告信号与OUE合作并了解它们应该是您投资过程的一部分。
一般来说,我们不会建议只购买你看到的第一批股息股票。这是这是一份精心挑选的股息支付强劲的有趣股票的名单。
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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。