Should Chuang’s China Investments Limited (HKG:298) Be Part Of Your Dividend Portfolio?
Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Chuang’s China Investments Limited (HKG:298) has returned to shareholders over the past 10 years, an average dividend yield of 6.00% annually. Does Chuang’s China Investments tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis.
Check out our latest analysis for Chuang’s China Investments
5 checks you should use to assess a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is it paying an annual yield above 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share risen in the past couple of years?
Can it afford to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
Does Chuang’s China Investments pass our checks?
Chuang’s China Investments has a trailing twelve-month payout ratio of 29.43%, 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.
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.
Relative to peers, Chuang’s China Investments generates a yield of 6.86%, which is high for Real Estate stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank Chuang’s China Investments 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 urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three important factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 298’s future growth? Take a look at our free research report of analyst consensus for 298’s outlook.
Valuation: What is 298 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 298 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.
