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Formosa Optical Technology Ltd. offers a reliable dividend yield of 4.2%, though it falls short of the top 25% in Taiwan. The company's dividends have been stable and growing over the past decade, with a payout ratio of 72.3% supported by earnings and an 88.8% cash payout ratio, indicating sustainability from both profits and free cash flow. Additionally, its price-to-earnings ratio of 17.2x is attractive compared to the broader Taiwan market average of 21.6x.

• Click here and access our complete dividend analysis report to understand the dynamics of Formosa Optical TechnologyLtd.

• Upon reviewing our latest valuation report, Formosa Optical TechnologyLtd's share price might be too optimistic.

Chang Wah Electromaterials

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Chang Wah Electromaterials Inc. trades electrical, telecommunication, and semiconductor materials and parts in Taiwan, Asia, and internationally with a market cap of NT$31.72 billion.

Operations: Chang Wah Electromaterials Inc.'s revenue is primarily derived from its operations, with Chang Wah Electromaterials Inc. contributing NT$7.12 billion and Chang Wah Technology Co., Ltd. and its subsidiary generating NT$11.74 billion.

Dividend Yield: 5.2%

Chang Wah Electromaterials offers a dividend yield of 5.16%, placing it in the top 25% of Taiwan's market, yet its sustainability is questionable due to a high payout ratio of 133.5% not covered by earnings. Although dividends have increased over the past decade, they have been volatile with drops exceeding 20%. The company's cash payout ratio is more favorable at 82.5%, indicating coverage by cash flows despite overall reliability concerns.

• Click to explore a detailed breakdown of our findings in Chang Wah Electromaterials' dividend report.

• The valuation report we've compiled suggests that Chang Wah Electromaterials' current price could be inflated.

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This 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.

Companies discussed in this article include SEHK:1263 TPEX:5312 and TWSE:8070.

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