A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. In the past 5 years Modern Land (China) Co Limited (HKG:1107) has returned an average of 5.00% per year to investors in the form of dividend payouts. Let’s dig deeper into whether Modern Land (China) should have a place in your portfolio. Check out our latest analysis for Modern Land (China)
5 questions I ask before picking a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is its annual yield among the top 25% of dividend-paying companies?
- 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 its earnings sufficient to payout dividend at the current rate?
- Will it be able to continue to payout at the current rate in the future?
How does Modern Land (China) fare?
The current trailing twelve-month payout ratio for the stock is 19.19%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a higher payout ratio of 21.80%, leading to a dividend yield of around 5.59%. Furthermore, EPS should increase to CN¥0.27. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. The reality is that it is too early to consider Modern Land (China) as a dividend investment. It has only been consistently paying dividends for 5 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Compared to its peers, Modern Land (China) produces a yield of 5.00%, which is high for Real Estate stocks.
With these dividend metrics in mind, I definitely rank Modern Land (China) 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, 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. I’ve put together three key factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for 1107’s future growth? Take a look at our free research report of analyst consensus for 1107’s outlook.
- Historical Performance: What has 1107’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.
- 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.