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Anonymous

07 Dec 2019

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General Investing

How do I know if a company will keep on paying dividends?

How do I know if a company will keep on paying dividends?

Discussion (15)

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We wont know. All you can do is analyse the cashflow statement of a company's past years statement, then make an educated guess into the future if the cashflow generated by the company is capable of sustaining the payment of dividends

Pang Zhe Liang

07 Dec 2019

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

There is no way to confirm this. The best alternative is to make an intelligent guess based on the past track record.

Here is everything about me and what I do best.

Look at historical DPU

Look at their CASH FLOW (Not earnings)

Look at their Debt

That being said, looking at these things still wont gaurantee they will keep paying dividends because there are things like black swans. Everything is all probability. So best to split your funds into a few, so if one stops giving, you are not affected too badly.​​​

We dont know if the company will pay dividend forever. but we can estimate or predict.

few things to check:

consistent /growing dividend payment history

good cashflow

low/no debt.

dividend payment policy.

do note: if debt is pilling up, and cashflow is getting weaker, these are signs that the dividends might drop/stop or unsustainable...

I don't think anyone can say for sure. But a good place to look for guidance is the annual report or...

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