Three Days Left Until Shenzhen Kaifa Technology Co., Ltd. (SZSE:000021) Trades Ex-Dividend
Attention Investors! Shenzhen Kaifa Technology Co., Ltd. (SZSE:000021) is set to trade ex-dividend in the next three days. If you're among the investors who cherish dividend income, this news is surely exciting. Let's break it down in simpler terms and explain why this date is important and what it means for your investment.
What Does Ex-Dividend Mean?
The ex-dividend date is one business day before the record date. This is the cut-off date for shareholders to be noted on the company’s books to qualify for the dividend payment.
So, if you purchase the stock on or after June 27th, you will not receive the dividend set to be paid on the 27th of June. Simply put, to be eligible for the dividend, you need to have bought the stock before June 27th.
Dividend Payment Details
- Next dividend payment: CN¥0.13 per share
- Total in the last 12 months: CN¥0.13 per share
- Current share price: CN¥15.28
- Trailing yield: Around 0.9%
Is the Dividend Sustainable?
A big question for any dividend investor is whether the company can keep paying out dividends. Here's what we know:
- Payout ratio: Shenzhen Kaifa Technology paid out 30% of its profit in dividends last year. This is a comfortable amount, indicating they aren’t overstretching.
- Cash flow: Last year, 57% of their free cash flow was used to pay dividends. This is within the normal range, suggesting good sustainability.
Key Financials to Note
Earnings Per Share (EPS): Over the past five years, Shenzhen Kaifa Technology's EPS has remained flat. This isn’t ideal as the best dividend stocks usually show meaningful growth in their earnings.
Dividend Growth: Historically, Shenzhen Kaifa Technology has been increasing its dividend by an average of 10% per year over the past 10 years.
Should You Invest?
While the company has some good points, such as sustainable dividends covered by profits and cash flow, there are some areas of concern:
- Flat earnings per share over the past five years.
- The company is paying out a majority of its earnings, which might limit future growth prospects.
Given these factors, it might take more to fully convince investors of the dividend merits of Shenzhen Kaifa Technology. It’s always wise to consider potential risks and perform thorough research before making investment decisions.
Note: One critical warning sign has been identified for Shenzhen Kaifa Technology that investors should consider before investing.
Stay informed and make smart decisions by keeping these key points in mind!
