Asia Satellite Telecommunications Holdings Limited (HKG:1135): 4 Days To Buy Before The Ex-Dividend Date
Investors who want to cash in on Asia Satellite Telecommunications Holdings Limited’s (HKG:1135) upcoming dividend of HK$0.18 per share have only 4 days left to buy the shares before its ex-dividend date, 27 September 2018, in time for dividends payable on the 02 November 2018. Is this future income a persuasive enough catalyst for investors to think about Asia Satellite Telecommunications Holdings as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.
Check out our latest analysis for Asia Satellite Telecommunications Holdings
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is their annual yield among the top 25% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has it increased its dividend per share amount 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?
How well does Asia Satellite Telecommunications Holdings fit our criteria?
Asia Satellite Telecommunications Holdings has a trailing twelve-month payout ratio of 34.4%, meaning the dividend is sufficiently covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.
If you want to dive deeper into the sustainability of a certain payout ratio, you may wish to consider the cash flow of the business. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time.
In terms of its peers, Asia Satellite Telecommunications Holdings produces a yield of 6.9%, which is high for Telecom stocks.
Next Steps:
With this in mind, I definitely rank Asia Satellite Telecommunications Holdings 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, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three pertinent aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for 1135’s future growth? Take a look at our free research report of analyst consensus for 1135’s outlook.
Valuation: What is 1135 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 1135 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
