Final Takeawayįrom a dividend perspective, should investors buy or avoid Nova Wellness Group Berhad? Earnings per share have grown somewhat, although Nova Wellness Group Berhad paid out over half its profits and the dividend was not well covered by free cash flow. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders. Nova Wellness Group Berhad has delivered 13% dividend growth per year on average over 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. Earnings have been growing at a steady rate, but we're concerned dividend payments consumed most of the company's cash flow over the past year. With that in mind, we're encouraged by the steady growth at Nova Wellness Group Berhad, with earnings per share up 9.5% on average over the last five years. If earnings fall far enough, the company could be forced to cut its dividend. Historic-dividend Have Earnings And Dividends Been Growing?īusinesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. 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. Over the past year it paid out 191% of its free cash flow as dividends, which is uncomfortably high. A useful secondary check can be to evaluate whether Nova Wellness Group Berhad generated enough free cash flow to afford its dividend. Nova Wellness Group Berhad paid out more than half (50%) of its earnings last year, which is a regular payout ratio for most companies. 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 check whether the dividend payments are covered, and if earnings are growing.Ĭheck out our latest analysis for Nova Wellness Group Berhadĭividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Based on the last year's worth of payments, Nova Wellness Group Berhad has a trailing yield of 5.1% on the current stock price of MYR0.65. Last year, in total, the company distributed RM0.033 to shareholders. The company's next dividend payment will be RM0.013 per share. In other words, investors can purchase Nova Wellness Group Berhad's shares before the 30th of November in order to be eligible for the dividend, which will be paid on the 8th of December. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Nova Wellness Group Berhad ( KLSE:NOVA) is about to go ex-dividend in just 3 days.
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