Interested In Ming Fai International Holdings Limited (HKG:3828)’s Upcoming HK$0.02 Dividend? You Have 4 Days Left
Investors who want to cash in on Ming Fai International Holdings Limited’s (HKG:3828) upcoming dividend of HK$0.02 per share have only 4 days left to buy the shares before its ex-dividend date, 19 September 2018, in time for dividends payable on the 05 October 2018. Is this future income a persuasive enough catalyst for investors to think about Ming Fai International Holdings as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.
View our latest analysis for Ming Fai International Holdings
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
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 it increased its dividend per share amount over the past?
Is is able to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
How does Ming Fai International Holdings fare?
Ming Fai International Holdings has a trailing twelve-month payout ratio of 50.4%, which means that the dividend is 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.
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. Not only have dividend payouts from Ming Fai International Holdings fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. These characteristics do not bode well for income investors seeking reliable stream of dividends.
Relative to peers, Ming Fai International Holdings generates a yield of 6.9%, which is high for Personal Products stocks.
Next Steps:
Taking all the above into account, Ming Fai International Holdings is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. 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, 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 key aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for 3828’s future growth? Take a look at our free research report of analyst consensus for 3828’s outlook.
Historical Performance: What has 3828’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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.
