INCAR FINANCIAL SERVICE Co., Ltd. (KOSDAQ:211050) Passed Our Checks, And It's About To Pay A ₩100.00 Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see INCAR FINANCIAL SERVICE Co., Ltd. (KOSDAQ:211050) is about to trade ex-dividend in the next three days. 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 as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Thus, you can purchase INCAR FINANCIAL SERVICE's shares before the 29th of December in order to receive the dividend, which the company will pay on the 20th of April.

The company's next dividend payment will be ₩100.00 per share, and in the last 12 months, the company paid a total of ₩100.00 per share. Calculating the last year's worth of payments shows that INCAR FINANCIAL SERVICE has a trailing yield of 0.8% on the current share price of ₩13080.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. We need to see whether the dividend is covered by earnings and if it's growing.

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If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. INCAR FINANCIAL SERVICE is paying out just 7.1% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.

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 INCAR FINANCIAL SERVICE

Click here to see how much of its profit INCAR FINANCIAL SERVICE 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. It's encouraging to see INCAR FINANCIAL SERVICE has grown its earnings rapidly, up 41% a year for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, three years ago, INCAR FINANCIAL SERVICE has lifted its dividend by approximately 19% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

The Bottom Line

Is INCAR FINANCIAL SERVICE worth buying for its dividend? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. We think this is a pretty attractive combination, and would be interested in investigating INCAR FINANCIAL SERVICE more closely.

Keen to explore more data on INCAR FINANCIAL SERVICE's financial performance? Check out our visualisation of its historical revenue and earnings growth.

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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.