Three Days Left Till Shenzhen Kaifa Know-how Co., Ltd. (SZSE:000021) Trades Ex-Dividend

Common readers will know that we love our dividends at Merely Wall St, which is why it is thrilling to see Shenzhen Kaifa Know-how Co., Ltd. (SZSE:000021) is about to commerce ex-dividend within the subsequent three days. The ex-dividend date is one enterprise day earlier than the document date, which is the closing date for shareholders to be current on the corporate’s books to be eligible for a dividend cost. The ex-dividend date is a vital date to pay attention to as any buy of the inventory made on or after this date would possibly imply a late settlement that does not present on the document date. Accordingly, Shenzhen Kaifa Know-how traders that buy the inventory on or after the twenty seventh of June won’t obtain the dividend, which might be paid on the twenty seventh of June.

The corporate’s subsequent dividend cost might be CN¥0.13 per share, and within the final 12 months, the corporate paid a complete of CN¥0.13 per share. Based mostly on the final 12 months’s value of funds, Shenzhen Kaifa Know-how inventory has a trailing yield of round 0.9% on the present share worth of CN¥15.28. Dividends are an vital supply of revenue to many shareholders, however the well being of the enterprise is essential to sustaining these dividends. That is why we should always at all times examine whether or not the dividend funds seem sustainable, and if the corporate is rising.

See our newest evaluation for Shenzhen Kaifa Know-how

If an organization pays out extra in dividends than it earned, then the dividend would possibly turn into unsustainable – hardly a great scenario. Shenzhen Kaifa Know-how paid out a snug 30% of its revenue final 12 months. That mentioned, even extremely worthwhile firms generally may not generate sufficient money to pay the dividend, which is why we should always at all times examine if the dividend is roofed by money circulation. Dividends consumed 57% of the corporate’s free money circulation final 12 months, which is inside a standard vary for many dividend-paying organisations.

It is constructive to see that Shenzhen Kaifa Know-how’s dividend is roofed by each earnings and money circulation, since that is usually an indication that the dividend is sustainable, and a decrease payout ratio normally suggests a larger margin of security earlier than the dividend will get lower.

Click on right here to see how a lot of its revenue Shenzhen Kaifa Know-how paid out during the last 12 months.

SZSE:000021 Historic Dividend June twenty third 2024

Have Earnings And Dividends Been Rising?

Shares with flat earnings can nonetheless be engaging dividend payers, however you will need to be extra conservative along with your strategy and demand a larger margin for security on the subject of dividend sustainability. If earnings fall far sufficient, the corporate might be pressured to chop its dividend. With that in thoughts, we’re not enthused to see that Shenzhen Kaifa Know-how’s earnings per share have remained successfully flat over the previous 5 years. Higher than seeing them fall off a cliff, for certain, however the most effective dividend shares develop their earnings meaningfully over the long term. Earnings per share development has been slim, and the corporate is already paying out a majority of its earnings. Whereas there’s some room to each enhance the payout ratio and reinvest within the enterprise, usually the upper a payout ratio goes, the decrease an organization’s prospects for future development.

The primary method most traders will assess an organization’s dividend prospects is by checking the historic charge of dividend development. Shenzhen Kaifa Know-how has delivered a mean of 10% per 12 months annual enhance in its dividend, primarily based on the previous 10 years of dividend funds.

Remaining Takeaway

Is Shenzhen Kaifa Know-how a horny dividend inventory, or higher left on the shelf? Earnings per share have been flat over the 10-year timeframe we think about, and Shenzhen Kaifa Know-how paid out lower than half its earnings and greater than half its free cashflow during the last 12 months. Whereas it does have some good issues going for it, we’re a bit ambivalent and it might take extra to persuade us of Shenzhen Kaifa Know-how’s dividend deserves.

In mild of that, whereas Shenzhen Kaifa Know-how has an interesting dividend, it is value understanding the dangers concerned with this inventory. For instance, we have discovered 1 warning signal for Shenzhen Kaifa Know-how that we advocate you think about earlier than investing within the enterprise.

Usually, we would not advocate simply shopping for the primary dividend inventory you see. This is a curated record of fascinating shares which might be sturdy dividend payers.

Valuation is advanced, however we’re serving to make it easy.

Discover out whether or not Shenzhen Kaifa Know-how is probably over or undervalued by testing our complete evaluation, which incorporates truthful worth estimates, dangers and warnings, dividends, insider transactions and monetary well being.

View the Free Evaluation

Have suggestions on this text? Involved in regards to the content material? Get in contact with us instantly. Alternatively, e-mail editorial-team (at) simplywallst.com.

This text by Merely Wall St is common in nature. We offer commentary primarily based on historic information and analyst forecasts solely utilizing an unbiased methodology and our articles aren’t supposed to be monetary recommendation. It doesn’t represent a suggestion to purchase or promote any inventory, and doesn’t take account of your goals, or your monetary scenario. We purpose to deliver you long-term targeted evaluation pushed by elementary information. Observe that our evaluation might not issue within the newest price-sensitive firm bulletins or qualitative materials. Merely Wall St has no place in any shares talked about.

Valuation is advanced, however we’re serving to make it easy.

Discover out whether or not Shenzhen Kaifa Know-how is probably over or undervalued by testing our complete evaluation, which incorporates truthful worth estimates, dangers and warnings, dividends, insider transactions and monetary well being.

View the Free Evaluation

Have suggestions on this text? Involved in regards to the content material? Get in contact with us instantly. Alternatively, e-mail editorial-team@simplywallst.com

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