Only 3 Days Left To Avi-Tech Electronics Limited (SGX:BKY)’s Ex-Dividend Date, Should You Buy?
Attention dividend hunters! Avi-Tech Electronics Limited (SGX:BKY) will be distributing its dividend of SGD0.01 per share on the 15 May 2018, and will start trading ex-dividend in 3 days time on the 30 April 2018. Should you diversify into Avi-Tech Electronics and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. See our latest analysis for Avi-Tech Electronics
5 questions to ask before buying a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Does it pay an annual yield higher than 75% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share amount increased over the past?
Can it afford to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
How does Avi-Tech Electronics fare?
Avi-Tech Electronics has a trailing twelve-month payout ratio of 54.97%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a higher payout ratio of 72.69%, leading to a dividend yield of around 7.80%. Moreover, EPS should increase to SGD0.05. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward. 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. Dividend payments from Avi-Tech Electronics have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends. Relative to peers, Avi-Tech Electronics generates a yield of 5.53%, which is high for Semiconductor stocks.
Next Steps:
Keeping in mind the dividend characteristics above, Avi-Tech Electronics is definitely worth considering for investors looking to build a dedicated income portfolio. Given that 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. There are three pertinent factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for BKY’s future growth? Take a look at our free research report of analyst consensus for BKY’s outlook.
Valuation: What is BKY 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 BKY 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 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.
