Tangshan Sanyou Chemical Industries Co.,Ltd (SHSE:600409) stock is about to trade ex-dividend in day or so. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Thus, you can purchase Tangshan Sanyou Chemical IndustriesLtd's shares before the 24th of June in order to receive the dividend, which the company will pay on the 24th of June.
The company's next dividend payment will be CN¥0.083 per share, on the back of last year when the company paid a total of CN¥0.083 to shareholders. Looking at the last 12 months of distributions, Tangshan Sanyou Chemical IndustriesLtd has a trailing yield of approximately 1.6% on its current stock price of CN¥5.13. If you buy this business for its dividend, you should have an idea of whether Tangshan Sanyou Chemical IndustriesLtd's dividend is reliable and sustainable. As a result, readers should always check whether Tangshan Sanyou Chemical IndustriesLtd has been able to grow its dividends, or if the dividend might be cut.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Tangshan Sanyou Chemical IndustriesLtd has a low and conservative payout ratio of just 23% of its income after tax. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It distributed 44% of its free cash flow as dividends, a comfortable payout level for most companies.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
SHSE:600409 Historic Dividend June 22nd 2024
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. Readers will understand then, why we're concerned to see Tangshan Sanyou Chemical IndustriesLtd's earnings per share have dropped 14% a year over the past five years. Such a sharp decline casts doubt on the future sustainability of the dividend.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. It looks like the Tangshan Sanyou Chemical IndustriesLtd dividends are largely the same as they were 10 years ago. If a company's dividend stays flat while earnings are in decline, this is typically a sign that it is paying out a larger percentage of its earnings. This can become unsustainable if earnings fall far enough.
To Sum It Up
Has Tangshan Sanyou Chemical IndustriesLtd got what it takes to maintain its dividend payments? Earnings per share are down meaningfully, although at least the company is paying out a low and conservative percentage of both its earnings and cash flow. It's definitely not great to see earnings falling, but at least there may be some buffer before the dividend needs to be cut. In summary, while it has some positive characteristics, we're not inclined to race out and buy Tangshan Sanyou Chemical IndustriesLtd today.
In light of that, while Tangshan Sanyou Chemical IndustriesLtd has an appealing dividend, it's worth knowing the risks involved with this stock. Case in point: We've spotted 1 warning sign for Tangshan Sanyou Chemical IndustriesLtd you should be aware of.
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.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.
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同社の次回の配当支払額は1株あたりCN¥0.083である。去年会社が株主に対して合計CN¥0.083を支払ったことから、過去12ヶ月間の分配を見ると、現在のCN¥5.13の株価に対してのトレーリング・イールドはおよそ1.6%である。配当目当てでこのビジネスを買う場合、Tangshan Sanyou Chemical IndustriesLtdの配当が信頼性と持続可能性があるかどうかを考慮するべきである。そのため、読者は常に同社が配当を増やすことができたか、配当を減らす可能性があるかどうかを確認する必要がある。
配当は通常、企業の利益から支払われるため、企業が稼いだよりも多くを払う場合、通常、その配当はさらに削減されるリスクが高くなる。Tangshan Sanyou Chemical IndustriesLtdは、税後収入のわずか23%だけの低い保有率を持っており、保守的である。ただし、高収益企業であっても、配当を支払うために十分なキャッシュを生み出すことができない場合があるため、配当が現金フローでカバーされているかどうかを常に確認する必要がある。フリーキャッシュフローの44%を配当金として分配することで、多くの企業にとって快適な支払いレベルとなっている。
収益が減少しているビジネスは配当の観点からはややこしいものです。投資家は配当を好むため、利益が減少し配当が削減される場合、同時に株価が大幅に売られることが予想されます。5年間で1株あたりの収益が年間14%減少したTangshan Sanyou Chemical IndustriesLtdを見ると、このような急激な減少は配当金の将来の持続可能性に疑念を投げかけます。
多くの投資家は、配当支払額が時間とともにどのように変化するかを評価することによって、企業の配当の実績を評価する。Tangshan Sanyou Chemical IndustriesLtdの配当は、10年前とほぼ同じであるようだ。利益が減少しているのに配当が変わらない場合、通常、より大きな割合で配当が支払われることを示すため、継続不可能になる可能性がある。
Tangshan Sanyou Chemical IndustriesLtdが配当支払いを維持するために必要な手順を踏んでいるか?1株あたりの収益は有意義に減少したが、少なくとも会社は収益とキャッシュフローの両方に対して低くて保守的な割合を支払っている。収益が下がっていることを見るのは本当に素晴らしくはないが、少なくとも配当を削減する必要がある前にバッファがあるかもしれない。要約すると、肯定的な特徴があるが、Tangshan Sanyou Chemical IndustriesLtdを今すぐ買うことには消極的である。
そのため、Tangshan Sanyou Chemical IndustriesLtdは魅力的な配当を持っているものの、この株のリスクを知っていることが重要である。例えば:1つの警告サインを見つけました、あなたも認識しておくべきです。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。