Only 3 Days Left Until Trio Industrial Electronics Group Limited (HKG:1710) Trades Ex-Dividend,
If you are interested in cashing in on Trio Industrial Electronics Group Limited’s (HKG:1710) upcoming dividend of HK$0.008 per share, you only have 3 days left to buy the shares before its ex-dividend date, 21 September 2018, in time for dividends payable on the 12 October 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Trio Industrial Electronics Group’s latest financial data to analyse its dividend attributes.
Check out our latest analysis for Trio Industrial Electronics Group
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has the amount of dividend per share grown over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will it be able to continue to payout at the current rate in the future?
Does Trio Industrial Electronics Group pass our checks?
The current trailing twelve-month payout ratio for the stock is 35.4%, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.
When considering the sustainability of dividends, it is also worth checking the cash flow of a company. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. The reality is that it is too early to consider Trio Industrial Electronics Group as a dividend investment. Last year was the company’s first dividend payment, so it is certainly early days. The standard practice for reliable payers is to look for 10 or so years of track record.
Compared to its peers, Trio Industrial Electronics Group has a yield of 5.3%, which is high for Electronic stocks but still below the market’s top dividend payers.
Next Steps:
After digging a little deeper into Trio Industrial Electronics Group’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. 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 urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three important aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 1710’s future growth? Take a look at our free research report of analyst consensus for 1710’s outlook.
Valuation: What is 1710 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 1710 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 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.
