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eMnet Inc. (KOSDAQ:123570) Stock Goes Ex-Dividend In Just Three Days

Simply Wall St · 2d ago

eMnet Inc. (KOSDAQ:123570) stock is about to trade ex-dividend in 3 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. In other words, investors can purchase eMnet's shares before the 29th of December in order to be eligible for the dividend, which will be paid on the 17th of April.

The company's upcoming dividend is ₩60.00 a share, following on from the last 12 months, when the company distributed a total of ₩60.00 per share to shareholders. Looking at the last 12 months of distributions, eMnet has a trailing yield of approximately 3.0% on its current stock price of ₩1985.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.

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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. Fortunately eMnet's payout ratio is modest, at just 34% of profit. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. Luckily it paid out just 20% of its free cash flow last year.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

Check out our latest analysis for eMnet

Click here to see how much of its profit eMnet paid out over the last 12 months.

historic-dividend
KOSDAQ:A123570 Historic Dividend December 25th 2025

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. Readers will understand then, why we're concerned to see eMnet's earnings per share have dropped 11% a year over the past five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last six years, eMnet has lifted its dividend by approximately 20% a year on average.

To Sum It Up

From a dividend perspective, should investors buy or avoid eMnet? eMnet has comfortably low cash and profit payout ratios, which may mean the dividend is sustainable even in the face of a sharp decline in earnings per share. Still, we consider declining earnings to be a warning sign. In summary, while it has some positive characteristics, we're not inclined to race out and buy eMnet today.

While it's tempting to invest in eMnet for the dividends alone, you should always be mindful of the risks involved. We've identified 3 warning signs with eMnet (at least 1 which makes us a bit uncomfortable), and understanding them should be part of your investment process.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.