Luoyang Jianlong Micro-nano New Material Co., Ltd (SHSE:688357) stock is about to trade ex-dividend in 3 days. The ex-dividend date is one business day 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 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 Luoyang Jianlong Micro-nano New Material's shares before the 20th of December in order to receive the dividend, which the company will pay on the 20th of December.
The company's next dividend payment will be CN¥0.10 per share, and in the last 12 months, the company paid a total of CN¥0.60 per share. Calculating the last year's worth of payments shows that Luoyang Jianlong Micro-nano New Material has a trailing yield of 2.4% on the current share price of CN¥25.22. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
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. That's why it's good to see Luoyang Jianlong Micro-nano New Material paying out a modest 30% of its earnings.
Click here to see how much of its profit Luoyang Jianlong Micro-nano New Material paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. It's not encouraging to see that Luoyang Jianlong Micro-nano New Material's earnings are effectively flat over the past five years. We'd take that over an earnings decline any day, but in the long run, the best dividend stocks all grow their earnings per share.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last five years, Luoyang Jianlong Micro-nano New Material has lifted its dividend by approximately 15% a year on average.
To Sum It Up
Is Luoyang Jianlong Micro-nano New Material an attractive dividend stock, or better left on the shelf? Luoyang Jianlong Micro-nano New Material's earnings per share are basically flat over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. We think there are likely better opportunities out there.
However if you're still interested in Luoyang Jianlong Micro-nano New Material as a potential investment, you should definitely consider some of the risks involved with Luoyang Jianlong Micro-nano New Material. Every company has risks, and we've spotted 2 warning signs for Luoyang Jianlong Micro-nano New Material you should know about.
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.
