Is It Worth Considering Aplus Asset Advisor Co. Ltd (KRX:244920) For Its Upcoming Dividend?

It looks like Aplus Asset Advisor Co. Ltd (KRX:244920) is about to go ex-dividend in the next three days. The ex-dividend date is usually set to be two business days 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 an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Therefore, if you purchase Aplus Asset Advisor's shares on or after the 29th of December, you won't be eligible to receive the dividend, when it is paid on the 10th of April.

The company's next dividend payment will be ₩200.00 per share. Last year, in total, the company distributed ₩200 to shareholders. Last year's total dividend payments show that Aplus Asset Advisor has a trailing yield of 2.0% on the current share price of ₩9850.00. If you buy this business for its dividend, you should have an idea of whether Aplus Asset Advisor's dividend is reliable and sustainable. So we need to investigate whether Aplus Asset Advisor can afford its dividend, and if the dividend could grow.

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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. Fortunately Aplus Asset Advisor's payout ratio is modest, at just 34% of profit.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

See our latest analysis for Aplus Asset Advisor

Click here to see how much of its profit Aplus Asset Advisor 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 Aplus Asset Advisor'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.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Aplus Asset Advisor has seen its dividend decline 11% per annum on average over the past five years, which is not great to see.

Final Takeaway

Is Aplus Asset Advisor worth buying for its dividend? Aplus Asset Advisor's earnings per share have not grown at all in recent years, although we like that it is paying out a low percentage of its earnings. It might be worth researching if the company is reinvesting in growth projects that could grow earnings and dividends in the future, but for now we're on the fence about its dividend prospects.

So if you want to do more digging on Aplus Asset Advisor, you'll find it worthwhile knowing the risks that this stock faces. In terms of investment risks, we've identified 3 warning signs with Aplus Asset Advisor and understanding them should be part of your investment process.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

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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.