Three Days Left To Buy JI-Tech Co., Ltd. (KOSDAQ:417500) Before The Ex-Dividend Date

JI-Tech Co., Ltd. (KOSDAQ:417500) is about to trade 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, JI-Tech investors that purchase the stock on or after the 29th of December will not receive the dividend, which will be paid on the 15th of April.

The company's upcoming dividend is ₩100.00 a share, following on from the last 12 months, when the company distributed a total of ₩100.00 per share to shareholders. Calculating the last year's worth of payments shows that JI-Tech has a trailing yield of 3.1% on the current share price of ₩3260.00. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether JI-Tech has been able to grow its dividends, or if the dividend might be cut.

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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. JI-Tech is paying out just 23% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events. 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. JI-Tech paid a dividend despite reporting negative free cash flow last year. That's typically a bad combination and - if this were more than a one-off - not sustainable.

View our latest analysis for JI-Tech

Click here to see how much of its profit JI-Tech 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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. JI-Tech's earnings per share have plummeted approximately 44% a year over the previous five years.

Unfortunately JI-Tech has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

To Sum It Up

Is JI-Tech an attractive dividend stock, or better left on the shelf? It's disappointing to see earnings per share declining, and this would ordinarily be enough to discourage us from most dividend stocks, even though JI-Tech is paying out less than half its income as dividends. However, it's also paying out an uncomfortably high percentage of its cash flow, which makes us wonder just how sustainable the dividend really is. It's not that we think JI-Tech is a bad company, but these characteristics don't generally lead to outstanding dividend performance.

Although, if you're still interested in JI-Tech and want to know more, you'll find it very useful to know what risks this stock faces. Our analysis shows 3 warning signs for JI-Tech that we strongly recommend you have a look at before investing in the company.

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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.