Hengan International Group Company Limited (HKG:1044) Will Pay CN¥1.15 In Dividends
Investors who want to cash in on Hengan International Group Company Limited’s (HKG:1044) upcoming dividend of CN¥1.15 per share have only 4 days left to buy the shares before its ex-dividend date, 17 September 2018, in time for dividends payable on the 05 October 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Hengan International Group’s latest financial data to analyse its dividend attributes.
Check out our latest analysis for Hengan International Group
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is their annual yield among the top 25% of dividend payers?
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 it be able to continue to payout at the current rate in the future?
How well does Hengan International Group fit our criteria?
The current trailing twelve-month payout ratio for the stock is 66.7%, which means that the dividend is covered by earnings. Going forward, analysts expect 1044’s payout to remain around the same level at 66.7% of its earnings, which leads to a dividend yield of 3.9%. Moreover, EPS should increase to CN¥3.43.
When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of 1044 it has increased its DPS from CN¥0.64 to CN¥2.45 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. These are all positive signs of a great, reliable dividend stock.
Compared to its peers, Hengan International Group has a yield of 3.6%, which is on the low-side for Personal Products stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank Hengan International Group 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. I’ve put together three essential factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for 1044’s future growth? Take a look at our free research report of analyst consensus for 1044’s outlook.
Valuation: What is 1044 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 1044 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.
