How Does Sino Land Company Limited (HKG:83) Fare As A Dividend Stock?
Over the past 10 years Sino Land Company Limited (SEHK:83) has returned an average of 4.00% per year from dividend payouts. The company currently pays out a dividend yield of 3.97% to shareholders, making it a relatively attractive dividend stock. Does Sino Land tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. View our latest analysis for Sino Land
5 questions to ask before buying a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is it the top 25% annual dividend yield payer?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has the amount of dividend per share grown over the past?
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 Sino Land fare?
The company currently pays out 23.32% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect 83’s payout to increase to 65.48% of its earnings, which leads to a dividend yield of around 5.01%. However, EPS is forecasted to fall to HK$1.09 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. 83 has increased its DPS from HK$0.36 to HK$0.53 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes 83 a true dividend rockstar. Relative to peers, Sino Land generates a yield of 3.97%, which is high for Real Estate stocks but still below the market’s top dividend payers.
Next Steps:
Keeping in mind the dividend characteristics above, Sino Land is definitely worth considering for investors looking to build a dedicated income 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. There are three pertinent factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for 83’s future growth? Take a look at our free research report of analyst consensus for 83’s outlook.
Valuation: What is 83 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 83 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.
