Khind Holdings Berhad (KLSE:KHIND) is about to trade ex-dividend, therefore investors seeking its income should act soon. The ex-dividend date is one business day before a company’s record date, which determines which shareholders receive dividends. Any stock acquisition after the ex-dividend date may result in a late settlement that doesn’t show on the record date. To receive the dividend on May 18, you must buy Khind Holdings Berhad shares before May 5.

The company’s next dividend payment will be RM0.08, and in the past year, it paid RM0.08 per share. Khind Holdings Berhad’s MYR2.9 stock price yields 2.8% based on its last 12 months of payouts. If you buy Khind Holdings Berhad for its dividend, you should know if it’s stable. We must check if earnings cover the dividend and if it’s growing.

If a company pays out more than its profits, its dividend is at risk of being cut. Khind Holdings Berhad is paying out 20% of its profit after tax, which is comfortable and gives room for unforeseen circumstances.

Are earnings and Dividends Rising?

Since dividend growth is easier when earnings per share are rising, companies with strong growth prospects make the best dividend payers. If the dividend is lowered in a downturn, the company’s value could plummet.

Khind Holdings Berhad’s earnings have climbed 58% a year for five years, which is encouraging. Khind Holdings Berhad is a potential growth company with fast-growing earnings per share and sensible reinvestment of practically all profits.

Most investors use dividend growth history to evaluate a company’s payout prospects. Khind Holdings Berhad’s 10-year dividend increase averaged 2.9%. Earnings per share have grown faster than dividends, possibly because Khind Holdings Berhad is retaining more profits to build the firm.

Summing Up

Khind Holdings Berhad’s dividend—worth it? Reinvesting earnings provides more value than dividends for fast-growing companies that keep most of their income. This investment combination can provide long-term value for investors, making it one of the most desirable. Khind Holdings Berhad’s dividend qualities make it worth additional consideration.

Despite its attractive payout, Khind Holdings Berhad is risky. Khind Holdings Berhad has 4 warning indicators.

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