Investors looking to purchase shares of Shinkong Insurance Co., Ltd. (TWSE:2850) for its dividend should act quickly, as the stock is set to trade ex-dividend soon. The ex-dividend date is typically one business day before the record date, which is the deadline for being listed as a shareholder on the company’s books to receive the dividend. It’s crucial to be aware of the ex-dividend date because trades must be settled by or before the record date. To receive Shinkong Insurance’s dividend, investors should buy shares before the 12th of June, with the company paying out dividends on the 8th of July.
The upcoming dividend payment from Shinkong Insurance will be NT$4.99 per share, with a total of NT$2.54 per share paid out in the last 12 months. With a trailing yield of 2.6% based on the current stock price of NT$95.90, dividends play a significant role in providing income to shareholders. However, it’s essential to ensure that the company’s financial health supports these dividend payments and that earnings are growing.
Shinkong Insurance’s payout ratio, which is the proportion of profit paid out as dividends, is at a modest 30%. Lower payout ratios generally indicate a more sustainable dividend. The company’s earnings per share have seen a 14% annual increase over the last five years, along with an average dividend growth rate of 7.8% per year over the past decade.
In conclusion, Shinkong Insurance appears to have the potential to maintain its dividend payments. Companies with growing earnings and a low payout ratio are likely reinvesting profits in the business, creating long-term value for investors. While the company shows promise from a dividend perspective, it’s essential to be aware of any risks it may face. Investors should conduct thorough research before investing in any dividend stock.
As always, it’s recommended to not solely rely on the first dividend stock you come across. Conduct proper due diligence and consider a curated list of strong dividend payers. Additionally, it’s crucial to consider the valuation of a stock before making investment decisions. Understanding fair value estimates, risks, dividends, insider transactions, and financial health can provide a comprehensive analysis of a company’s worth.