Investors looking to purchase shares of Solomon Technology Corporation (TWSE:2359) for its dividend should act quickly, as the stock is set to trade ex-dividend soon. The ex-dividend date is crucial, as it determines whether shareholders are eligible to receive a dividend payment. In order to qualify for the upcoming dividend of NT$1.70 per share, investors must own Solomon Technology’s stock before the 10th of July, with the payment scheduled for the 26th of July.
Solomon Technology has a trailing yield of approximately 1.0% based on its current share price of NT$175.00. The company paid out NT$1.70 per share to shareholders last year, with a payout ratio of 55% of its earnings and 48% of its free cash flow. This indicates that the dividend is well-covered by both profit and cash flow, suggesting sustainability.
Earnings per share for Solomon Technology have been growing at a rate of 13% per year over the past five years. The company has also increased its dividend by an average of 6.1% annually over the last nine years. With a balanced payout ratio and consistent dividend growth, there is potential for further increases in the future.
Overall, Solomon Technology’s growing earnings and conservative payout ratios make it an attractive option for dividend investors. While there are risks involved with any investment, the company’s solid financial performance and dividend track record make it worth further consideration.