Here's What We Like About Lindeman Asia Investment's (KOSDAQ:277070) Upcoming Dividend

Readers hoping to buy Lindeman Asia Investment Corporation (KOSDAQ:277070) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is commonly two business days 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 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 Lindeman Asia Investment's shares before the 29th of December in order to receive the dividend, which the company will pay on the 9th of April.

The company's next dividend payment will be ₩79.00 per share. Last year, in total, the company distributed ₩79.00 to shareholders. Based on the last year's worth of payments, Lindeman Asia Investment stock has a trailing yield of around 1.6% on the current share price of ₩4925.00. If you buy this business for its dividend, you should have an idea of whether Lindeman Asia Investment's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

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Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Lindeman Asia Investment has a low and conservative payout ratio of just 23% of its income after tax.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Check out our latest analysis for Lindeman Asia Investment

Click here to see how much of its profit Lindeman Asia Investment paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it's a relief to see Lindeman Asia Investment earnings per share are up 2.0% per annum over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Lindeman Asia Investment has seen its dividend decline 2.0% per annum on average over the past six years, which is not great to see.

To Sum It Up

Is Lindeman Asia Investment worth buying for its dividend? Lindeman Asia Investment has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. Overall, Lindeman Asia Investment looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

So while Lindeman Asia Investment looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. For instance, we've identified 4 warning signs for Lindeman Asia Investment (1 makes us a bit uncomfortable) you should be aware of.

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.