Investing
Deswell Industries announces dividend dates with caution advised for investors
© Reuters.
Investors interested in the upcoming dividend distribution from Deswell Industries (NASDAQ:DSWL) must own shares by November 30 to be eligible, with the actual payout scheduled for December 21. The company, which is nearing its ex-dividend date, currently offers a trailing yield of 7.4% based on its stock price of $2.71.
Despite a steady earnings per share over the past five years and a moderate payout ratio of 52%, experts urge caution due to the lack of earnings growth, which poses a risk to future dividend sustainability.
Last year’s dividend was $0.20 per share, comfortably funded by only a quarter of the company’s free cash flow, indicating short-term stability. Nonetheless, investors are advised to thoroughly examine Deswell Industries’ financial health and strategic direction before making investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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