Hsing Ta CementLtd (TWSE:1109) Will Pay A Larger Dividend Than Last Year At NT$1.20

Hsing Ta Cement Co.,Ltd (TWSE:1109) has announced an increase in dividend payment to NT$1.20 on August 15th, up from last year’s payment for the same period. This brings the dividend yield to 6.1%, which is sure to please shareholders.

The company’s earnings easily cover the distributions, indicating that a significant portion of earnings are being reinvested into the business for growth. Despite a projected 4.1% decrease in EPS over the next 12 months, the payout ratio remains comfortable at 70%, leaving room for future business growth.

While Hsing Ta Cement Co.,Ltd has a history of dividends, there has been at least one instance of a dividend cut in the last 10 years. However, the company has shown growth in distributions at an annual rate of approximately 9.9% since 2014.

With declining earnings per share over the past five years, Hsing Ta Cement Co.,Ltd may face challenges in growing its dividend in the future. While the company is currently generating sufficient cash to sustain the dividend, the overall track record is not impeccable.

In conclusion, while it is positive to see a dividend increase, caution is advised when relying solely on Hsing Ta Cement Co.,Ltd for dividend income. Investors generally prefer companies with a stable dividend policy. It is important to consider all factors, including valuation and risks, when assessing a company for investment.