One Day Left Until Daesang Corporation (KRX:001680) Trades Ex-Dividend
Daesang Corporation (KRX:001680) stock is about to trade ex-dividend in couple of 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 important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. This means that investors who purchase Daesang's shares on or after the 30th of March will not receive the dividend, which will be paid on the 23rd of April.
The company's next dividend payment will be ₩850.00 per share, on the back of last year when the company paid a total of ₩850 to shareholders. Based on the last year's worth of payments, Daesang stock has a trailing yield of around 4.0% on the current share price of ₩21000.00. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to check whether the dividend payments are covered, and if earnings are growing.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately Daesang's payout ratio is modest, at just 39% of profit. Given that the company reported a loss last year, we now need to see if it generated enough free cash flow to fund the dividend. If Daesang didn't generate enough cash to pay the dividend, then it must have either paid from cash in the bank or by borrowing money, neither of which is sustainable in the long term. It paid out more than half (65%) of its free cash flow in the past year, which is within an average range for most companies.
See our latest analysis for Daesang
Click here to see how much of its profit Daesang paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. Daesang reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Daesang has delivered an average of 6.4% per year annual increase in its dividend, based on the past seven years of dividend payments.
We update our analysis on Daesang every 24 hours, so you can always get the latest insights on its financial health, here.
Final Takeaway
Is Daesang an attractive dividend stock, or better left on the shelf? First, it's not great to see the company paying a dividend despite being loss-making over the last year. On the plus side, the dividend was covered by free cash flow." In summary, it's hard to get excited about Daesang from a dividend perspective.
So if you want to do more digging on Daesang, you'll find it worthwhile knowing the risks that this stock faces. For example, we've found 1 warning sign for Daesang that we recommend you consider before investing in the business.
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.