Only 2 Days Left To Cash In On Nexteer Automotive Group Limited (HKG:1316) Dividend, Should You Buy?
If you are interested in cashing in on Nexteer Automotive Group Limited’s (SEHK:1316) upcoming dividend of $0.03 per share, you only have 2 days left to buy the shares before its ex-dividend date, 06 June 2018, in time for dividends payable on the 22 June 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Nexteer Automotive Group’s latest financial data to analyse its dividend characteristics. View our latest analysis for Nexteer Automotive Group
5 questions I ask before picking a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is it the top 25% annual dividend yield payer?
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?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does Nexteer Automotive Group pass our checks?
Nexteer Automotive Group has a trailing twelve-month payout ratio of 19.92%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 20.49%, leading to a dividend yield of 2.06%. In addition to this, EPS should increase to $0.14. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view Nexteer Automotive Group as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, Nexteer Automotive Group generates a yield of 1.70%, which is on the low-side for Auto Components stocks.
Next Steps:
Taking all the above into account, Nexteer Automotive Group is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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. Below, I’ve compiled three fundamental factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 1316’s future growth? Take a look at our free research report of analyst consensus for 1316’s outlook.
Valuation: What is 1316 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 1316 is currently mispriced by the market.
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.
