Only 2 Days Left To Cash In On Xtep International Holdings Limited (HKG:1368) Dividend, Should Investors Buy?
If you are interested in cashing in on Xtep International Holdings Limited’s (HKG:1368) upcoming dividend of CN¥0.10 per share, you only have 2 days left to buy the shares before its ex-dividend date, 04 September 2018, in time for dividends payable on the 31 October 2018. Is this future income a persuasive enough catalyst for investors to think about Xtep 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.
Check out our latest analysis for Xtep International Holdings
5 questions to ask before buying 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?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has dividend per share risen in the past couple of years?
Does earnings amply cover its dividend payments?
Will it be able to continue to payout at the current rate in the future?
How well does Xtep International Holdings fit our criteria?
The current trailing twelve-month payout ratio for the stock is 57.9%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 57.5%, leading to a dividend yield of around 4.1%. Furthermore, EPS should increase to CN¥0.30.
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. Although 1368’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time.
In terms of its peers, Xtep International Holdings produces a yield of 4.5%, which is high for Luxury stocks but still below the market’s top dividend payers.
Next Steps:
With these dividend metrics in mind, I definitely rank Xtep International Holdings 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, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three relevant factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for 1368’s future growth? Take a look at our free research report of analyst consensus for 1368’s outlook.
Valuation: What is 1368 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 1368 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 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.
