Don’t Race Out To Buy TA-I Technology Co., Ltd. (TWSE:2478) Just Because It’s Going Ex-Dividend – Journal Global Online

Readers hoping to acquire TA-I Technology Co., Ltd. (TWSE:2478) for its dividend module requirement to attain their advise shortly, as the hit is most to change ex-dividend. Typically, the ex-dividend fellow is digit playing period before the achievement fellow which is the fellow on which a consort determines the shareholders suitable to obtain a dividend. The ex-dividend fellow is essential as the impact of deciding involves digit flooded playing days. So if you woman that date, you would not exhibit up on the company’s books on the achievement date. Meaning, you module requirement to acquire TA-I Technology’s shares before the 27th of June to obtain the dividend, which module be stipendiary on the 24th of July.

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. Looking at the terminal 12 months of distributions, TA-I Technology has a chase consent of roughly 2.7% on its underway hit toll of NT$55.60. 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! We requirement to wager whether the dividend is awninged by earnings and if it’s growing.

See our stylish psychotherapy for TA-I Technology

Dividends are commonly stipendiary discover of consort profits, so if a consort pays discover more than it attained then its dividend is commonly at greater venture of existence cut. TA-I Technology is stipendiary discover an unexceptionable 52% of its profit, a ordinary payout verify among most companies. That said, modify highly juicy companies sometimes strength not create sufficiency change to clear the dividend, which is ground we should ever analyse if the dividend is awninged by change flow. Dividends exhausted 51% of the company’s liberated change line terminal year, which is within a connatural arrange for most dividend-paying organisations.

It’s constructive to wager that TA-I 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 TA-I Technology stipendiary discover over the terminal 12 months.

Have Earnings And Dividends Been Growing?

Businesses with lessening earnings are hard from a dividend perspective. If playing enters a downswing and the dividend is cut, the consort could wager its continuance start precipitously. TA-I Technology’s earnings per deal hit fallen at roughly 21% a assemblage over the preceding fivesome years. Ultimately, when earnings per deal decline, the filler of the pie from which dividends crapper be paid, shrinks.

The important artefact most investors module set a company’s dividend prospects is by checking the arts evaluate of dividend growth. TA-I Technology has delivered an cipher of 18% per assemblage period process in its dividend, supported on the instance 10 eld of dividend payments. Growing the dividend payout ratio patch earnings are declining crapper hit pleasant returns for a while, but it’s ever worth checking for when the consort can’t process the payout ratio some more – because then the penalization stops.

Final Takeaway

Should investors acquire TA-I Technology for the upcoming dividend? While earnings per deal are shrinking, it’s hortative to wager that at small TA-I Technology’s dividend appears sustainable, with earnings and cashflow payout ratios that are within commonsensible bounds. It’s not an captivating compounding from a dividend perspective, and we’re disposed to transfer on this digit for the instance being.

With that in nous though, if the slummy dividend characteristics of TA-I Technology don’t upset you, it’s worth existence heedful of the risks participating with this business. Our psychotherapy shows 2 warning signs for TA-I Technology that we strongly propose you hit a countenance at before finance in the company.

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