Important news for shareholders and potential investors in Cheniere Energy Partners LP Holdings LLC (AMEX:CQH): The dividend payment of $0.56 per share will be distributed into shareholder on 30 May 2018, and the stock will begin trading ex-dividend at an earlier date, 18 May 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 Cheniere Energy Partners Holdings’s most recent financial data to examine its dividend characteristics in more detail. See our latest analysis for Cheniere Energy Partners Holdings
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
- 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?
- Does earnings amply cover its dividend payments?
- Will it have the ability to keep paying its dividends going forward?
How does Cheniere Energy Partners Holdings fare?
The current trailing twelve-month payout ratio for CQH is 150.69%, meaning the dividend is not sufficiently covered by its earnings. Going forward, analysts expect CQH’s payout to reduce to 103.47% of its earnings, which leads to a dividend yield of around 8.51%. However, EPS should increase to $1.88, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view Cheniere Energy Partners Holdings as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Relative to peers, Cheniere Energy Partners Holdings generates a yield of 7.94%, which is high for Oil and Gas stocks.
After digging a little deeper into Cheniere Energy Partners Holdings’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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 important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for CQH’s future growth? Take a look at our free research report of analyst consensus for CQH’s outlook.
- Valuation: What is CQH 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 CQH is currently mispriced by the market.
- 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.