Readers hoping to buy Onward Holdings Co., Ltd. (TSE:8016) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, Onward Holdings investors that purchase the stock on or after the 28th of August will not receive the dividend, which will be paid on the 10th of November. The company's next dividend payment will be JP¥16.00 per share. Last year, in total, the company distributed JP¥33.00 to shareholders. Based on the last year's worth of payments, Onward Holdings stock has a trailing yield of around 4.3% on the current share price of JP¥772.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Onward Holdings paid out a comfortable 38% of its profit last year. A useful secondary check can be to evaluate whether Onward Holdings generated enough free cash flow to afford its dividend. Onward Holdings paid out more free cash flow than it generated - 191%, to be precise - last year, which we think is concerningly high. It's hard to consistently pay out more cash than you generate without