Readers hoping to buy NetLink NBN Trust (SGX:CJLU) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a 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. Accordingly, NetLink NBN Trust investors that purchase the stock on or after the 15th of November will not receive the dividend, which will be paid on the 30th of November.
The company's upcoming dividend is S$0.026 a share, following on from the last 12 months, when the company distributed a total of S$0.052 per share to shareholders. Based on the last year's worth of payments, NetLink NBN Trust has a trailing yield of 5.8% on the current stock price of SGD0.9. If you buy this business for its dividend, you should have an idea of whether NetLink NBN Trust's dividend is reliable and sustainable. As a result, readers should always check whether NetLink NBN Trust has been able to grow its dividends, or if the dividend might be cut.
View our latest analysis for NetLink NBN Trust
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. NetLink NBN Trust distributed an unsustainably high 191% of its profit as dividends to shareholders last year. Without more sustainable payment behaviour, the dividend looks precarious. A useful secondary check can be to evaluate whether NetLink NBN Trust generated enough free cash flow to afford its dividend. The company paid out 101% of its free cash flow over the last year, which we think is outside the ideal range for most businesses. Cash flows are usually much more volatile than earnings, so this could be a temporary effect - but we'd generally want to look more closely here.
Cash is slightly more important than profit from a dividend perspective, but given NetLink NBN Trust's payouts were not well covered by either earnings or cash flow, we would be concerned about the sustainability of this dividend.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
SGX:CJLU Historic Dividend November 10th 2022
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're encouraged by the steady growth at NetLink NBN Trust, with earnings per share up 5.7% on average over the last five years. Earnings per share have been growing comfortably, although unfortunately the company is paying out more of its profits than we're comfortable with over the long term.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, four years ago, NetLink NBN Trust has lifted its dividend by approximately 3.2% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
Final Takeaway
Is NetLink NBN Trust an attractive dividend stock, or better left on the shelf? NetLink NBN Trust is paying out an uncomfortably high percentage of both earnings and cash flow as dividends, although at least earnings per share are growing somewhat. Bottom line: NetLink NBN Trust has some unfortunate characteristics that we think could lead to sub-optimal outcomes for dividend investors.
With that in mind though, if the poor dividend characteristics of NetLink NBN Trust don't faze you, it's worth being mindful of the risks involved with this business. In terms of investment risks, we've identified 1 warning sign with NetLink NBN Trust 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.
希望購買的讀者 NetLink NBN Trus (SGX: CJLU) 的股息需要在短期內採取行動,因爲該股即將進行除息交易。除息日是公司記錄日期之前的一個工作日,該日期是公司確定哪些股東有權獲得股息的日期。除息日很重要,因爲任何股票交易都必須在記錄日期之前結算才有資格獲得股息。因此,在11月15日當天或之後購買該股票的NetLink NBN Trust投資者將不會獲得股息,股息將在11月30日支付。
該公司即將派發的股息爲每股0.026新元,此前該公司在過去12個月中向股東分配了每股0.052新元。根據去年的付款額,NetLink NBN Trust的後續收益率爲5.8%,而目前的股價爲0.9新加坡元。如果你收購這家企業是爲了分紅,你應該知道NetLink NBN Trust的股息是否可靠和可持續。因此,讀者應隨時檢查NetLink NBN Trust是否能夠增加股息,或者股息是否可能被削減。
查看我們對 NetLink NBN Trust 的最新分析
股息通常從公司收益中支付。如果一家公司支付的股息多於獲得的利潤,那麼分紅可能是不可持續的。去年,NetLink NBN Trust將其191%的利潤作爲股息分配給了股東,其利潤居高不下。如果沒有更可持續的支付行爲,分紅就顯得不穩定。一個有用的輔助檢查可以是評估NetLink NBN Trust是否產生了足夠的自由現金流來支付股息。去年,該公司支付了其自由現金流的101%,我們認爲這超出了大多數企業的理想範圍。現金流的波動性通常比收益大得多,因此這可能是暫時的影響,但我們通常希望在此處進行更仔細的研究。
從股息的角度來看,現金略比利潤重要,但鑑於NetLink NBN Trust的支出沒有被收益或現金流充分支付,我們會擔心這筆分紅的可持續性。
點擊此處查看該公司的派息率,以及分析師對其未來股息的估計。
新加坡交易所:CJLU 2022 年 11 月 10 日曆史股息
收益和股息一直在增長嗎?
實現可持續收益增長的公司的股票通常具有最佳的分紅前景,因爲收益增加時更容易提高股息。投資者喜歡分紅,因此,如果收益下降而股息減少,預計股票將同時被大量拋售。考慮到這一點,NetLink NBN Trust的穩步增長令我們感到鼓舞,在過去五年中,每股收益平均增長了5.7%。每股收益一直在輕鬆增長,儘管不幸的是,從長遠來看,該公司支付的利潤超出了我們的承受能力。
大多數投資者評估公司股息前景的主要方法是檢查歷史股息增長率。自四年前我們開始發佈數據以來,NetLink NBN Trust已將其股息平均每年提高約3.2%。令人鼓舞的是,該公司在收益增長的同時增加了股息,這表明企業對獎勵股東至少有一定興趣。
最後的外賣
NetLink NBN Trust 是一隻有吸引力的股息股票,還是最好留在架子上?儘管至少每股收益有所增長,但NetLink NBN Trust將收益和現金流的百分比高得令人不安。底線:NetLink NBN Trust有一些不幸的特徵,我們認爲這些特徵可能會給股息投資者帶來不理想的結果。
但是,考慮到這一點,如果NetLink NBN Trust的不良股息特徵沒有讓你感到困惑,那麼值得注意這項業務所涉及的風險。在投資風險方面, 我們已經發現了 1 個警告標誌 使用 NetLink NBN Trust 並瞭解它們應該是您投資過程的一部分。
一個常見的投資錯誤是買入你看到的第一隻有趣的股票。在這裏你可以找到 高收益股息股票的完整清單。
對這篇文章有反饋嗎?對內容感到擔憂? 取得聯繫 直接和我們聯繫。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St 的這篇文章本質上是一般性的。 我們僅使用公正的方法提供基於歷史數據和分析師預測的評論,我們的文章無意提供財務建議。 它不構成買入或賣出任何股票的建議,也沒有考慮您的目標或財務狀況。我們的目標是爲您提供由基本面數據驅動的長期重點分析。請注意,我們的分析可能未將最新的價格敏感型公司公告或定性材料考慮在內。簡而言之,華爾街對上述任何股票都沒有頭寸。