Income Investors: Should You Consider Computer Modelling Group Ltd. (TSE:CMG) Before Its Ex-Dividend?

Alright, fellow income investors, let's talk about Computer Modelling Group Ltd. (TSE:CMG) and whether it's worth your consideration before its ex-dividend date. Now, I know what you're thinking: "CMG? Isn't that the company that's never paid a dividend?" Well, hold your horses, because there's more to this story than meets the eye.

First things first, let's address the elephant in the room. Yes, CMG has not paid a dividend since December 15, 2020. But that doesn't mean we should dismiss it outright. In fact, there are a few reasons why CMG might be worth a closer look.

As you can see from the image above, CMG did pay a dividend in the past. The last recorded dividend was $0.20 per share on December 15, 2020. While it's true that the company hasn't paid a dividend since then, it's essential to consider why that might be the case.



Take a look at the chart above, which shows CMG's financial performance over the past five years. You'll notice that the company's earnings per share (EPS) have been volatile, with a significant drop in 2020. This could be one reason why CMG chose to suspend its dividend payments. However, it's important to remember that a company's dividend policy is just one aspect of its overall financial health.

Now, let's talk about CMG's current valuation. As of February 28, 2025, CMG has a PE Ratio of 47.44 and a Market Cap of 73.15B. While these metrics suggest that CMG might be relatively overvalued compared to its industry peers and the broader market, it's essential to consider the company's growth prospects and potential turnaround.

As you can see from the image above, CMG has a moderate Dividend Growth Potential Score (DGPS) of 6.49%. While this score indicates that CMG may have limited growth potential for future dividends, it's important to remember that the company's dividend policy is just one aspect of its overall investment appeal.

In conclusion, while CMG may not be the most obvious choice for income investors, it's worth considering the company's past dividend history, financial performance, and growth potential. Keep in mind that a company's dividend policy is just one aspect of its overall investment appeal, and it's essential to consider the company's broader financial health and growth prospects.

So, should income investors look at CMG before its ex-dividend date? The answer is: it depends. If you're willing to take a chance on a company with a history of dividend payments and a moderate growth potential score, CMG might be worth a closer look. However, it's crucial to do your own research and consider the company's broader financial health and growth prospects before making an investment decision.

Happy investing, and remember: fortune favors the bold (and the well-informed)!