What To Know Before Buying Beijing Capital International Airport Company Limited (HKG:694) For Its Dividend
Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. Over the past 10 years, Beijing Capital International Airport Company Limited (SEHK:694) has returned an average of 2.00% per year to shareholders in terms of dividend yield. Does Beijing Capital International Airport tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. See our latest analysis for Beijing Capital International Airport
5 checks you should do on a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is their annual yield among the top 25% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share amount increased over the past?
Does earnings amply cover its dividend payments?
Will it have the ability to keep paying its dividends going forward?
Does Beijing Capital International Airport pass our checks?
Beijing Capital International Airport has a trailing twelve-month payout ratio of 40.00%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 36.76%, leading to a dividend yield of 3.12%. Furthermore, EPS should increase to CN¥0.75. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time. Relative to peers, Beijing Capital International Airport has a yield of 2.48%, which is on the low-side for Infrastructure stocks.
Next Steps:
With this in mind, I definitely rank Beijing Capital International Airport as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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 aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for 694’s future growth? Take a look at our free research report of analyst consensus for 694’s outlook.
Valuation: What is 694 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 694 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.
