What Makes Sino Land Company Limited (HKG:83) A Great Dividend Stock?
If you are an income investor, then Sino Land Company Limited (SEHK:83) should be on your radar. Sino Land Company Limited, an investment holding company, invests in, develops, manages, and trades in properties. Over the past 10 years, the HK$90.92B market cap company has been growing its dividend payments, from HK$0.35 to HK$0.53. Currently yielding 3.76%, let’s take a closer look at Sino Land’s dividend profile. View our latest analysis for Sino Land
What Is A Dividend Rock Star?
It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: Its annual yield is among the top 25% of dividend payers It consistently pays out dividend without missing a payment or significantly cutting payout 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
Sino Land currently yields 3.76%, which is high for Real Estate stocks. But the real reason Sino Land 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.
Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. In the case of 83 it has increased its DPS from HK$0.35 to HK$0.53 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. The company currently pays out 44.54% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 60.88%, leading to a dividend yield of 3.87%. However, EPS is forecasted to fall to HK$0.95 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
Next Steps:
Sino Land ticks all the boxes for what I look for in a dividend stock. If you are looking to build an income focused portfolio, this could be one to include. However, given 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 important aspects you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for 83’s future growth? Take a look at our free research report of analyst consensus for 83’s outlook.
2. Valuation: What is 83 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 83 is currently mispriced by the market.
3. 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.