Is Agile Group Holdings Limited (HKG:3383) A Smart Pick For Income Investors?
Agile Group Holdings Limited (SEHK:3383) has pleased shareholders over the past 10 years, paying out an average dividend of 4.00% annually. The company currently pays out a dividend yield of 5.72% to shareholders, making it a relatively attractive dividend stock. Let’s dig deeper into whether Agile Group Holdings should have a place in your portfolio. Check out our latest analysis for Agile Group Holdings
5 questions to ask before buying a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is it the top 25% annual dividend yield payer?
Has it paid dividend every year without dramatically reducing payout in the past?
Has the amount of dividend per share grown over the past?
Does earnings amply cover its dividend payments?
Will it be able to continue to payout at the current rate in the future?
Does Agile Group Holdings pass our checks?
The company currently pays out 48.30% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect 3383’s payout to remain around the same level at 44.70% of its earnings, which leads to a dividend yield of around 8.38%. Furthermore, EPS should increase to CN¥1.93. 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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. In terms of its peers, Agile Group Holdings produces a yield of 5.72%, which is high for Real Estate stocks.
Next Steps:
Considering the dividend attributes we analyzed above, Agile Group Holdings is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three pertinent aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for 3383’s future growth? Take a look at our free research report of analyst consensus for 3383’s outlook.
Valuation: What is 3383 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 3383 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.