2 Days Left To Cash In On Shui On Land Limited (HKG:272) Dividend, Should Investors Buy?
Investors who want to cash in on Shui On Land Limited’s (SEHK:272) upcoming dividend of CN¥0.07 per share have only 2 days left to buy the shares before its ex-dividend date, 31 May 2018, in time for dividends payable on the 15 June 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Shui On Land’s most recent financial data to examine its dividend characteristics in more detail. View our latest analysis for Shui On Land
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is it paying an annual yield above 75% of dividend payers?
Has it paid dividend every year without dramatically reducing payout in the past?
Has it increased its dividend per share amount over the past?
Can it afford to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
How does Shui On Land fare?
The company currently pays out 40.84% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect 272’s payout to increase to 54.54% of its earnings, which leads to a dividend yield of around 3.24%. However, EPS is forecasted to fall to CN¥0.19 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. Dividend payments from Shui On Land have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends. Relative to peers, Shui On Land has a yield of 4.48%, which is high for Real Estate stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank Shui On Land as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three essential aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 272’s future growth? Take a look at our free research report of analyst consensus for 272’s outlook.
Valuation: What is 272 worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether 272 is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
