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There's A Lot To Like About Industrial Bank of Korea's (KRX:024110) Upcoming ₩1065.00 Dividend

Simply Wall St · 03/25 21:44

It looks like Industrial Bank of Korea (KRX:024110) is about to go ex-dividend in the next 2 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 an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. This means that investors who purchase Industrial Bank of Korea's shares on or after the 28th of March will not receive the dividend, which will be paid on the 1st of January.

The company's upcoming dividend is ₩1065.00 a share, following on from the last 12 months, when the company distributed a total of ₩984 per share to shareholders. Based on the last year's worth of payments, Industrial Bank of Korea has a trailing yield of 6.2% on the current stock price of ₩15770.00. 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! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

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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. Fortunately Industrial Bank of Korea's payout ratio is modest, at just 32% of profit. Industrial Bank of Korea paid a dividend despite reporting negative free cash flow over the last twelve months. This may be due to heavy investment in the business, but this is still suboptimal from a dividend sustainability perspective.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

View our latest analysis for Industrial Bank of Korea

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

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KOSE:A024110 Historic Dividend March 25th 2025

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. This is why it's a relief to see Industrial Bank of Korea earnings per share are up 8.3% per annum over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Industrial Bank of Korea has delivered 12% dividend growth per year on average over the past 10 years. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

To Sum It Up

Is Industrial Bank of Korea an attractive dividend stock, or better left on the shelf? Industrial Bank of Korea has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. In summary, Industrial Bank of Korea appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

While it's tempting to invest in Industrial Bank of Korea for the dividends alone, you should always be mindful of the risks involved. To help with this, we've discovered 1 warning sign for Industrial Bank of Korea that you should be aware of before investing in their shares.

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