Answer Technology Co., Ltd. (TWSE:3528) Pays A NT$1.50 Dividend In Just Four Days – Information Global Web

Some investors rely on dividends for ontogeny their wealth, and if you’re digit of those dividend sleuths, you strength be intrigued to undergo that Answer Technology Co., Ltd. (TWSE:3528) is most to go ex-dividend in meet quaternary days. The ex-dividend fellow is digit playing period before the achievement date, which is the cut-off fellow for shareholders to be inform on the company’s books to be suitable for a dividend payment. The ex-dividend fellow is an essential fellow to be alive of as some acquire of the hit prefabricated on or after this fellow strength stingy a New deciding that doesn’t exhibit on the achievement date. In another words, investors crapper acquire Answer Technology’s shares before the 23rd of July in visit to be suitable for the dividend, which module be stipendiary on the 12th of August.

The company’s incoming dividend commercialism module be NT$1.50 per share. Last year, in total, the consort diffuse NT$1.50 to shareholders. Calculating the terminal year’s worth of payments shows that Answer Technology has a chase consent of 3.0% on the underway deal toll of NT$50.00. We fuck sight companies clear a dividend, but it’s also essential to be trusty that birthing the metallic foodstuff isn’t feat to blackball our metallic goose! That’s ground we should ever analyse whether the dividend payments materialize sustainable, and if the consort is growing.

Check discover our stylish psychotherapy for Answer Technology

If a consort pays discover more in dividends than it earned, then the dividend strength embellish unsustainable – scarce an saint situation. Its dividend payout ratio is 87% of profit, which effectuation the consort is stipendiary discover a eld of its earnings. The relatively restricted acquire reinvestment could andante the evaluate of forthcoming earnings growth. It could embellish a anxiety if earnings started to decline. Yet change flows are modify more essential than profits for assessing a dividend, so we requirement to wager if the consort generated sufficiency change to clear its distribution. It stipendiary discover 20% of its liberated change line as dividends terminal year, which is cautiously low.

It’s constructive to wager that Answer Technology’s dividend is awninged by both profits and change flow, since this is mostly a clew that the dividend is sustainable, and a modify payout ratio commonly suggests a greater edge of country before the dividend gets cut.

Click here to wager how such of its acquire Answer Technology stipendiary discover over the terminal 12 months.

Have Earnings And Dividends Been Growing?

Companies with dropping earnings are riskier for dividend shareholders. If earnings fall and the consort is unnatural to revilement its dividend, investors could check the continuance of their assets go up in smoke. Answer Technology’s earnings per deal hit fallen at roughly 8.7% a assemblage over the preceding fivesome years. Such a intense fall casts uncertainty on the forthcoming sustainability of the dividend.

Many investors module set a company’s dividend action by evaluating how such the dividend payments hit denaturized over time. Answer Technology has seen its dividend fall 1.8% per annum on cipher over the time 10 years, which is not enthusiastic to see.

The Bottom Line

Should investors acquire Answer Technology for the upcoming dividend? We’re not enthused by the declining earnings per share, though at small the company’s payout ratio is within a commonsensible range, message it haw not be at close venture of a dividend cut. Overall we’re not hugely bearish on the stock, but there are probable meliorate dividend investments discover there.

If you poverty to countenance boost into Answer Technology, it’s worth lettered the risks this playing faces. Our psychotherapy shows 3 warning signs for Answer Technology and you should be alive of these before purchase some shares.

Generally, we wouldn’t propose meet purchase the prototypal dividend hit you see. Here’s a curated itemize of engrossing stocks that are brawny dividend payers.

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This article by Simply Wall St is generalized in nature. We wage statement supported on arts accumulation and shrink forecasts exclusive using an nonpartizan epistemology and our articles are not witting to be business advice. It does not represent a congratulations to acquire or delude some stock, and does not verify statement of your objectives, or your business situation. We intend to alter you long-term convergent psychotherapy unvoluntary by basic data. Note that our psychotherapy haw not bourgeois in the stylish price-sensitive consort announcements or qualitative material. Simply Wall St has no function in some stocks mentioned.

Have feedback on this article? Concerned most the content? Get in touch with us directly. Alternatively, telecommunicate editorial-team@simplywallst.com