Latest news with #CityDevelopments'
Yahoo
28-04-2025
- Business
- Yahoo
Should Income Investors Look At City Developments Limited (SGX:C09) Before Its Ex-Dividend?
City Developments Limited (SGX:C09) stock is about to trade ex-dividend in 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 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. Thus, you can purchase City Developments' shares before the 2nd of May in order to receive the dividend, which the company will pay on the 20th of May. The company's next dividend payment will be S$0.08 per share, and in the last 12 months, the company paid a total of S$0.10 per share. Calculating the last year's worth of payments shows that City Developments has a trailing yield of 2.0% on the current share price of S$4.99. 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. We've discovered 2 warning signs about City Developments. View them for free. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately City Developments's payout ratio is modest, at just 38% of profit. 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. Luckily it paid out just 15% of its free cash flow last year. It's positive to see that City Developments's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. See our latest analysis for City Developments Click here to see the company's payout ratio, plus analyst estimates of its future dividends. 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. City Developments's earnings per share have fallen at approximately 19% a year over the previous five years. Such a sharp decline casts doubt on the future sustainability of the dividend. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. City Developments's dividend payments per share have declined at 1.8% per year on average over the past 10 years, which is uninspiring. From a dividend perspective, should investors buy or avoid City Developments? City Developments 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. To summarise, City Developments looks okay on this analysis, although it doesn't appear a stand-out opportunity. On that note, you'll want to research what risks City Developments is facing. For example, City Developments has 2 warning signs (and 1 which is potentially serious) we think you should know about. 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. 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
22-04-2025
- Business
- Yahoo
City Developments (SGX:C09) Is Due To Pay A Dividend Of SGD0.08
City Developments Limited's (SGX:C09) investors are due to receive a payment of SGD0.08 per share on 20th of May. This means the annual payment will be 2.1% of the current stock price, which is lower than the industry average. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. However, City Developments' earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business. Looking forward, earnings per share is forecast to rise by 150.8% over the next year. If the dividend continues on this path, the payout ratio could be 19% by next year, which we think can be pretty sustainable going forward. View our latest analysis for City Developments While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The annual payment during the last 10 years was SGD0.12 in 2015, and the most recent fiscal year payment was SGD0.10. Doing the maths, this is a decline of about 1.8% per year. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. City Developments' EPS has fallen by approximately 19% per year during the past five years. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future. Over the next year, however, earnings are actually predicted to rise, but we would still be cautious until a track record of earnings growth can be built. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. We would be a touch cautious of relying on this stock primarily for the dividend income. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Just as an example, we've come across 2 warning signs for City Developments you should be aware of, and 1 of them is a bit unpleasant. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. 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.
