APT Satellite Holdings Limited (HKG: 1045) share becomes ex-dividend in just three days
APT Satellite Holdings Limited (HKG: 1045) the stock is about to trade excluding dividend in three days. The ex-dividend date is generally set at one working day before the registration date which is the deadline by which you must be present in the books of the company as a shareholder to receive the dividend. The ex-dividend date is an important date to know, as any purchase of shares made after this date may mean a late settlement which does not appear on the record date. Therefore, if you buy shares of APT Satellite Holdings on or after September 16, you will not be able to receive the dividend when it is paid on October 11.
The company’s next dividend payment will be HK $ 0.04 per share, and over the past 12 months the company has paid a total of HK $ 0.23 per share. Based on the value of last year’s payouts, APT Satellite Holdings has a rolling 8.9% return on the current share price of HK $ 2.57. Dividends are an important source of income for many shareholders, but the health of the business is crucial to sustaining these dividends. It is therefore necessary to check whether dividend payments are covered and whether profits are growing.
Check out our latest analysis for APT Satellite Holdings
Dividends are generally paid out of company profits. If a company pays more dividends than it made a profit, the dividend could be unsustainable. Its dividend payout ratio is 78% of profits, which means the company pays out the majority of its profits. The relatively limited reinvestment of earnings could slow the rate of growth of future earnings. We would be concerned if profits started to decline. Yet cash flow is usually more important than earnings in assessing dividend sustainability, so we always need to check whether the company has generated enough cash to pay its dividend. Fortunately, it has only paid out 39% of its free cash flow in the past year.
It is encouraging to see that the dividend is covered by both earnings and cash flow. This usually suggests that the dividend is sustainable, as long as profits don’t drop sharply.
Click here to see how much of its profits APT Satellite Holdings has paid in the past 12 months.
Have profits and dividends increased?
Companies with declining profits are riskier for dividend shareholders. If business goes into recession and the dividend is reduced, the company could experience a sharp drop in value. APT Satellite Holdings’ earnings per share have fallen about 12% per year over the past five years. When earnings per share decrease, the maximum amount of dividends that can be paid also decreases.
Another key way to measure a company’s dividend outlook is to measure its historical rate of dividend growth. Over the past 10 years, APT Satellite Holdings has increased its dividend by approximately 24% per year on average. It’s intriguing, but the combination of growing dividends despite falling profits can usually only be achieved by paying a higher percentage of the profits. APT Satellite Holdings is already paying 78% of its profits, and with declining profits, we think this dividend is unlikely to grow quickly in the future.
The bottom line
Is APT Satellite Holdings worth buying for its dividend? We’re not thrilled with the drop in earnings per share, although at least the company’s payout ratio is in a reasonable range, meaning there may not be any imminent risk. lower dividend. To sum up, APT Satellite Holdings looks good in this analysis, although it doesn’t look like a great opportunity.
If you want to learn more about APT Satellite Holdings, it helps to know the risks that this business faces. Our analysis shows 2 warning signs for APT Satellite Holdings which we strongly recommend that you consult before investing in the business.
However, we don’t recommend simply buying the first dividend stock you see. Here is a list of interesting dividend paying stocks with a yield above 2% and a dividend coming soon.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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