Complex Micro Interconnection Co., Ltd. (TWSE:6835) has announced that it will pay a dividend of NT$2.00 on the 31st of July. This dividend payment will result in a dividend yield of 3.8%, which is in line with the industry average.
The company’s dividend is well covered by its earnings, indicating that it is sustainable. Complex Micro Interconnection Ltd. has been earning enough to cover the dividend, with a significant portion of its earnings being reinvested into the business for growth. Looking ahead, earnings per share could increase by 7.0% over the next year if current trends continue. The estimated payout ratio is 47%, which is within a comfortable range for the sustainability of the dividend.
Although Complex Micro Interconnection Ltd. does not have a long payment history, the dividend has remained stable in recent years. The company has shown modest dividend growth, and its earnings per share have been growing at a rate of 7.0% annually over the past five years.
In conclusion, the company’s consistent dividend and strong earnings growth make it a potentially attractive dividend stock. While the dividend looks viable for the future, investors should be aware of the company’s past sustainability challenges. Companies with a stable dividend policy tend to attract more investor interest, but other factors should also be considered when analyzing a company.
If you are interested in a comprehensive analysis of Complex Micro Interconnection Ltd., including fair value estimates, risks, dividends, insider transactions, and financial health, you can view the Free Analysis. As always, it is important to conduct your own research and consider all factors before making investment decisions.