Interested In INFOvine.co.Ltd's (KOSDAQ:115310) Upcoming ₩1200.00 Dividend? You Have Three Days Left

It looks like INFOvine.co.,Ltd. (KOSDAQ:115310) is about to go ex-dividend in the next 3 days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a 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 INFOvine.co.Ltd's shares before the 29th of December in order to receive the dividend, which the company will pay on the 31st of March.

The company's next dividend payment will be ₩1200.00 per share, and in the last 12 months, the company paid a total of ₩1,200 per share. Based on the last year's worth of payments, INFOvine.co.Ltd has a trailing yield of 1.9% on the current stock price of ₩64600.00. 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 investigate whether INFOvine.co.Ltd can afford its dividend, and if the dividend could grow.

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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. Fortunately INFOvine.co.Ltd's payout ratio is modest, at just 32% of profit. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out more than half (70%) of its free cash flow in the past year, which is within an average range for most companies.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

Check out our latest analysis for INFOvine.co.Ltd

Click here to see how much of its profit INFOvine.co.Ltd paid out over the last 12 months.

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 INFOvine.co.Ltd's earnings per share have remained effectively flat over the past five years. Better than seeing them fall off a cliff, for sure, but the best dividend stocks grow their earnings meaningfully over the long run. Earnings growth has been slim and the company is paying out more than half of its earnings. While there is some room to both increase the payout ratio and reinvest in the business, generally the higher a payout ratio goes, the lower a company's prospects for future growth.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past six years, INFOvine.co.Ltd has increased its dividend at approximately 4.0% a year on average.

To Sum It Up

Is INFOvine.co.Ltd an attractive dividend stock, or better left on the shelf? Earnings per share have been flat over the six-year timeframe we consider, and INFOvine.co.Ltd paid out less than half its earnings and more than half its free cashflow over the last year. Overall, it's hard to get excited about INFOvine.co.Ltd from a dividend perspective.

While it's tempting to invest in INFOvine.co.Ltd for the dividends alone, you should always be mindful of the risks involved. Our analysis shows 1 warning sign for INFOvine.co.Ltd and you should be aware of it before buying any shares.

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.

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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.