Hang Lung Properties Limited (HKG:101): Ex-Dividend Is In 9 Days, Should You Buy?
Investors who want to cash in on Hang Lung Properties Limited’s (SEHK:101) upcoming dividend of HK$0.58 per share have only 9 days left to buy the shares before its ex-dividend date, 30 April 2018, in time for dividends payable on the 16 May 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Hang Lung Properties can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for Hang Lung Properties
How I analyze a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is it the top 25% annual dividend yield payer?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has dividend per share amount increased over the past?
Does earnings amply cover its dividend payments?
Will the company be able to keep paying dividend based on the future earnings growth?
How does Hang Lung Properties fare?
Hang Lung Properties has a trailing twelve-month payout ratio of 41.53%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 73.45%, leading to a dividend yield of 4.13%. However, EPS is forecasted to fall to HK$1.11 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although 101’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Relative to peers, Hang Lung Properties produces a yield of 4.09%, which is high for Real Estate stocks but still below the market’s top dividend payers.
Next Steps:
With these dividend metrics in mind, I definitely rank Hang Lung Properties 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 recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I’ve put together three key factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for 101’s future growth? Take a look at our free research report of analyst consensus for 101’s outlook.
Valuation: What is 101 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 101 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.
