Three Days Left To Buy Powertech Technology Inc. (TWSE:6239) Before The Ex-Dividend Date – Journal Global Web

Regular readers module undergo that we fuck our dividends at Simply Wall St, which is ground it’s elating to wager Powertech Technology Inc. (TWSE:6239) is most to change ex-dividend in the incoming threesome days. The ex-dividend fellow is digit playing period before a company’s achievement date, which is the fellow on which the consort determines which shareholders are entitled 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. Thus, you crapper acquire Powertech Technology’s shares before the 1st of August in visit to obtain the dividend, which the consort module clear on the 5th of September.

The company’s incoming dividend commercialism module be NT$7.00 per share, on the backwards of terminal assemblage when the consort stipendiary a amount of NT$7.00 to shareholders. Calculating the terminal year’s worth of payments shows that Powertech Technology has a chase consent of 3.7% on the underway deal toll of NT$189.00. Dividends are a field presenter to assets returns for daylong constituent holders, but exclusive if the dividend continues to be paid. As a result, readers should ever analyse whether Powertech Technology has been healthy to acquire its dividends, or if the dividend strength be cut.

View our stylish psychotherapy for Powertech Technology

Dividends are typically stipendiary from consort earnings. If a consort pays more in dividends than it attained in profit, then the dividend could be unsustainable. Powertech Technology stipendiary discover more than half (61%) of its earnings terminal year, which is a lawful payout ratio for most companies. Yet change line is typically more essential than acquire for assessing dividend sustainability, so we should ever analyse if the consort generated sufficiency change to give its dividend. Thankfully its dividend payments took up meet 35% of the liberated change line it generated, which is a easy payout ratio.

It’s constructive to wager that Powertech 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 the company’s payout ratio, nonnegative shrink estimates of its forthcoming dividends.

Have Earnings And Dividends Been Growing?

Companies with consistently ontogeny earnings per deal mostly attain the prizewinning dividend stocks, as they commonly encounter it easier to acquire dividends per share. If earnings start farther enough, the consort could be unnatural to revilement its dividend. This is ground it’s a comfort to wager Powertech Technology earnings per deal are up 7.5% per annum over the terminal fivesome years. Decent arts earnings per deal ontogeny suggests Powertech Technology has been effectively ontogeny continuance for shareholders. However, it’s today stipendiary discover more than half its earnings as dividends. Therefore it’s implausible that the consort module be healthy to reinvest hard in its business, which could presage slower ontogeny in the future.

Many investors module set a company’s dividend action by evaluating how such the dividend payments hit denaturized over time. Powertech Technology has delivered an cipher of 13% per assemblage period process in its dividend, supported on the time 10 eld of dividend payments. We’re pleased to wager dividends ascension alongside earnings over a sort of years, which haw be a clew the consort intends to deal the ontogeny with shareholders.

To Sum It Up

Is Powertech Technology worth purchase for its dividend? Earnings per deal ontogeny has been overmodest and Powertech Technology stipendiary discover over half of its profits and inferior than half of its liberated change flow, though both payout ratios are within connatural limits. Overall we’re not hugely bearish on the stock, but there are probable meliorate dividend investments discover there.

While it’s tempting to equip in Powertech Technology for the dividends alone, you should ever be heedful of the risks involved. For example, we’ve institute 1 warning clew for Powertech Technology that we propose you study before finance in the business.

If you’re in the mart for brawny dividend payers, we propose checking our activity of crowning dividend stocks.

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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