8 Days Left Before New World Development Company Limited (HKG:17) Will Start Trading Ex-Dividend, Should Investors Buy?
Investors who want to cash in on New World Development Company Limited’s (SEHK:17) upcoming dividend of HK$0.14 per share have only 8 days left to buy the shares before its ex-dividend date, 16 March 2018, in time for dividends payable on the 31 May 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into New World Development’s latest financial data to analyse its dividend attributes. Check out our latest analysis for New World Development
Here’s how I find good dividend stocks
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Does it pay an annual yield higher than 75% of dividend payers?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has dividend per share risen in the past couple of years?
Is its earnings sufficient to payout dividend at the current rate?
Will it have the ability to keep paying its dividends going forward?
How does New World Development fare?
New World Development has a trailing twelve-month payout ratio of 31.44%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect 17’s payout to increase to 48.64% of its earnings, which leads to a dividend yield of 4.15%. However, EPS is forecasted to fall to HK$0.84 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Although 17’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time. Compared to its peers, New World Development generates a yield of 4.00%, which is high for Real Estate stocks.
Next Steps:
With this in mind, I definitely rank New World Development as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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 pertinent aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 17’s future growth? Take a look at our free research report of analyst consensus for 17’s outlook.
Valuation: What is 17 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 17 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.
