What Makes Anhui Expressway Company Limited (HKG:995) A Great Dividend Stock?
Anhui Expressway Company Limited (SEHK:995) is a true Dividend Rock Star. Its yield of 4.32% makes it one of the market’s top dividend payer. In the past ten years, Anhui Expressway has also grown its dividend from 0.22 to 0.26. Below, I have outlined more attractive dividend aspects for Anhui Expressway for income investors who may be interested in new dividend stocks for their portfolio. See our latest analysis for Anhui Expressway
What Is A Dividend Rock Star?
It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically: It is paying an annual yield above 75% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its dividend per share amount has increased over the past It can afford to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward
High Yield And Dependable
The company’s dividend yield stands at 4.32%, which is high for Infrastructure stocks. But the real reason Anhui Expressway stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you’re investor who wants a robust cash inflow from your portfolio over a long period of time.
If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. In the case of 995 it has increased its DPS from CN¥0.22 to CN¥0.26 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. Anhui Expressway has a trailing twelve-month payout ratio of 35.22%, which means that the dividend is covered by earnings. Going forward, analysts expect 995’s payout to remain around the same level at 37.66% of its earnings, which leads to a dividend yield of around 5.46%. Moreover, EPS should increase to CN¥0.76.
Next Steps:
There aren’t many other stocks out there with the same track record as Anhui Expressway, so I would certainly recommend further examining the stock if its dividend characteristics appeal to you. However, given 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 essential aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for 995’s future growth? Take a look at our free research report of analyst consensus for 995’s outlook.
Valuation: What is 995 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 995 is currently mispriced by the market.
Other Dividend Rockstars: Are there strong dividend payers with better 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.
