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Yahoo
3 days ago
- Business
- Yahoo
Don't Buy Poh Huat Resources Holdings Berhad (KLSE:POHUAT) For Its Next Dividend Without Doing These Checks
Poh Huat Resources Holdings Berhad (KLSE:POHUAT) is about to trade ex-dividend in the next four days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Therefore, if you purchase Poh Huat Resources Holdings Berhad's shares on or after the 9th of July, you won't be eligible to receive the dividend, when it is paid on the 24th of July. The company's next dividend payment will be RM00.02 per share, and in the last 12 months, the company paid a total of RM0.08 per share. Based on the last year's worth of payments, Poh Huat Resources Holdings Berhad stock has a trailing yield of around 8.1% on the current share price of RM00.985. If you buy this business for its dividend, you should have an idea of whether Poh Huat Resources Holdings Berhad's dividend is reliable and sustainable. As a result, readers should always check whether Poh Huat Resources Holdings Berhad has been able to grow its dividends, or if the dividend might be cut. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Last year Poh Huat Resources Holdings Berhad paid out 97% of its profits as dividends to shareholders, suggesting the dividend is not well covered by earnings. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Poh Huat Resources Holdings Berhad paid out more free cash flow than it generated - 138%, to be precise - last year, which we think is concerningly high. It's hard to consistently pay out more cash than you generate without either borrowing or using company cash, so we'd wonder how the company justifies this payout level. Poh Huat Resources Holdings Berhad does have a large net cash position on the balance sheet, which could fund large dividends for a time, if the company so chose. Still, smart investors know that it is better to assess dividends relative to the cash and profit generated by the business. Paying dividends out of cash on the balance sheet is not long-term sustainable. Cash is slightly more important than profit from a dividend perspective, but given Poh Huat Resources Holdings Berhad's payments were not well covered by either earnings or cash flow, we are concerned about the sustainability of this dividend. See our latest analysis for Poh Huat Resources Holdings Berhad Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Businesses with shrinking earnings are tricky from a dividend perspective. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're discomforted by Poh Huat Resources Holdings Berhad's 18% per annum decline in earnings in the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Poh Huat Resources Holdings Berhad has delivered 12% dividend growth per year on average over the past 10 years. That's intriguing, but the combination of growing dividends despite declining earnings can typically only be achieved by paying out a larger percentage of profits. Poh Huat Resources Holdings Berhad is already paying out 97% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. Has Poh Huat Resources Holdings Berhad got what it takes to maintain its dividend payments? It's looking like an unattractive opportunity, with its earnings per share declining, while, paying out an uncomfortably high percentage of both its profits (97%) and cash flow as dividends. Unless there are grounds to believe a turnaround is imminent, this is one of the least attractive dividend stocks under this analysis. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being. Although, if you're still interested in Poh Huat Resources Holdings Berhad and want to know more, you'll find it very useful to know what risks this stock faces. We've identified 3 warning signs with Poh Huat Resources Holdings Berhad (at least 1 which is a bit unpleasant), and understanding them should be part of your investment process. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
22-06-2025
- Business
- Yahoo
We Wouldn't Be Too Quick To Buy Ecora Resources PLC (LON:ECOR) Before It Goes Ex-Dividend
Ecora Resources PLC (LON:ECOR) is about to trade ex-dividend in the next three days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Thus, you can purchase Ecora Resources' shares before the 26th of June in order to receive the dividend, which the company will pay on the 25th of July. The company's next dividend payment will be US$0.0111 per share, on the back of last year when the company paid a total of US$0.082 to shareholders. Based on the last year's worth of payments, Ecora Resources has a trailing yield of 2.5% on the current stock price of UK£0.662. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to investigate whether Ecora Resources can afford its dividend, and if the dividend could grow. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Ecora Resources paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run. With the recent loss, it's important to check if the business generated enough cash to pay its dividend. If Ecora Resources didn't generate enough cash to pay the dividend, then it must have either paid from cash in the bank or by borrowing money, neither of which is sustainable in the long term. Dividends consumed 51% of the company's free cash flow last year, which is within a normal range for most dividend-paying organisations. See our latest analysis for Ecora Resources Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Ecora Resources was unprofitable last year, but at least the general trend suggests its earnings have been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Ecora Resources has seen its dividend decline 17% per annum on average over the past 10 years, which is not great to see. Remember, you can always get a snapshot of Ecora Resources's financial health, by checking our visualisation of its financial health, here. Is Ecora Resources worth buying for its dividend? It's hard to get used to Ecora Resources paying a dividend despite reporting a loss over the past year. At least the dividend was covered by free cash flow, however. It's not that we think Ecora Resources is a bad company, but these characteristics don't generally lead to outstanding dividend performance. Although, if you're still interested in Ecora Resources and want to know more, you'll find it very useful to know what risks this stock faces. Case in point: We've spotted 1 warning sign for Ecora Resources you should be aware of. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
21-06-2025
- Business
- Yahoo
Why It Might Not Make Sense To Buy Cancom SE (ETR:COK) For Its Upcoming Dividend
Cancom SE (ETR:COK) is about to trade ex-dividend in the next three days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Accordingly, Cancom investors that purchase the stock on or after the 25th of June will not receive the dividend, which will be paid on the 27th of June. The company's next dividend payment will be €1.00 per share, on the back of last year when the company paid a total of €1.00 to shareholders. Calculating the last year's worth of payments shows that Cancom has a trailing yield of 3.6% on the current share price of €27.90. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Cancom has been able to grow its dividends, or if the dividend might be cut. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Cancom distributed an unsustainably high 124% of its profit as dividends to shareholders last year. Without extenuating circumstances, we'd consider the dividend at risk of a cut. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Thankfully its dividend payments took up just 29% of the free cash flow it generated, which is a comfortable payout ratio. It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and Cancom fortunately did generate enough cash to fund its dividend. If executives were to continue paying more in dividends than the company reported in profits, we'd view this as a warning sign. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits. See our latest analysis for Cancom Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Businesses with shrinking earnings are tricky from a dividend perspective. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That's why it's not ideal to see Cancom's earnings per share have been shrinking at 3.2% a year over the previous five years. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Cancom has delivered 15% dividend growth per year on average over the past 10 years. That's intriguing, but the combination of growing dividends despite declining earnings can typically only be achieved by paying out a larger percentage of profits. Cancom is already paying out 124% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future. From a dividend perspective, should investors buy or avoid Cancom? It's not a great combination to see a company with earnings in decline and paying out 124% of its profits, which could imply the dividend may be at risk of being cut in the future. Yet cashflow was much stronger, which makes us wonder if there are some large timing issues in Cancom's cash flows, or perhaps the company has written down some assets aggressively, reducing its income. Overall it doesn't look like the most suitable dividend stock for a long-term buy and hold investor. Having said that, if you're looking at this stock without much concern for the dividend, you should still be familiar of the risks involved with Cancom. In terms of investment risks, we've identified 2 warning signs with Cancom and understanding them should be part of your investment process. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
14-06-2025
- Business
- Yahoo
Be Sure To Check Out Deneb Investments Limited (JSE:DNB) Before It Goes Ex-Dividend
It looks like Deneb Investments Limited (JSE:DNB) is about to go ex-dividend in the next 3 days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. This means that investors who purchase Deneb Investments' shares on or after the 18th of June will not receive the dividend, which will be paid on the 23rd of June. The company's upcoming dividend is R00.11 a share, following on from the last 12 months, when the company distributed a total of R0.11 per share to shareholders. Calculating the last year's worth of payments shows that Deneb Investments has a trailing yield of 5.6% on the current share price of R01.96. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Deneb Investments paid out a comfortable 41% of its profit last year. Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is. Check out our latest analysis for Deneb Investments Click here to see how much of its profit Deneb Investments paid out over the last 12 months. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's comforting to see Deneb Investments's earnings have been skyrocketing, up 94% per annum for the past five years. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Deneb Investments has delivered an average of 14% per year annual increase in its dividend, based on the past 10 years of dividend payments. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it. Is Deneb Investments worth buying for its dividend? When companies are growing rapidly and retaining a majority of the profits within the business, it's usually a sign that reinvesting earnings creates more value than paying dividends to shareholders. This strategy can add significant value to shareholders over the long term - as long as it's done without issuing too many new shares. Deneb Investments ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention. In light of that, while Deneb Investments has an appealing dividend, it's worth knowing the risks involved with this stock. To help with this, we've discovered 2 warning signs for Deneb Investments that you should be aware of before investing in their shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
