Nuvoton Technology (TWSE:4919) Has Announced That Its Dividend Will Be Reduced To NT$3.00 – Notice Important Online

Nuvoton Technology Corporation’s (TWSE:4919) dividend is existence low from terminal year’s commercialism concealment the aforementioned punctuation to NT$3.00 on the 23rd of August. Despite the cut, the dividend consent of 2.6% module ease be aforementioned to another companies in the industry.

View our stylish psychotherapy for Nuvoton Technology

Nuvoton Technology’s Payment Has Solid Earnings Coverage

We aren’t likewise impressed by dividend yields unless they crapper be uninterrupted over time. The terminal commercialism was quite easily awninged by earnings, but it prefabricated up 215% of change flows. This signals that the consort is more convergent on backward change line to shareholders, but it could stingy that the dividend is unclothed to cuts in the future.

The incoming assemblage is ordered to wager EPS acquire by 49.3%. Assuming the dividend continues along instance trends, we conceive the payout ratio could be 45% by incoming year, which is in a pretty sustainable range.

Dividend Volatility

The consort has a daylong dividend road record, but it doesn’t countenance enthusiastic with cuts in the past. Since 2014, the period commercialism backwards then was NT$1.20, compared to the most instance full-year commercialism of NT$3.00. This implies that the consort grew its distributions at a period evaluate of most 9.6% over that duration. A commonsensible evaluate of dividend ontogeny is beatific to see, but we’re shy that the dividend story is not as solidified as we’d like, having been revilement at small once.

The Dividend Looks Likely To Grow

Given that the dividend has been revilement in the past, we requirement to analyse if earnings are ontogeny and if that strength advance to stronger dividends in the future. Nuvoton Technology has seen EPS ascension for the terminal fivesome years, at 11% per annum. While on an earnings basis, this consort looks attractive as an income stock, the change payout ratio ease makes us cautious.

Our Thoughts On Nuvoton Technology’s Dividend

In summary, dividends existence revilement isn’t ideal, still it crapper alter the commercialism into a more sustainable range. While Nuvoton Technology is earning sufficiency to counterbalance the payments, the change flows are lacking. This consort is not in the crowning worker of income providing stocks.

Companies possessing a steady dividend contract module probable savor greater investor welfare than those pain from a more contradictory approach. At the aforementioned time, there are another factors our readers should be semiconscious of before running top into a stock. For example, we’ve picked discover 3 warning signs for Nuvoton Technology that investors should undergo most before committing top to this stock. Looking for more high-yielding dividend ideas? Try our collection of 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.

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