Sundart Holdings Limited (HKG:1568): Ex-Dividend Is In 3 Days, Should You Buy?
If you are interested in cashing in on Sundart Holdings Limited’s (SEHK:1568) upcoming dividend of HK$0.02 per share, you only have 3 days left to buy the shares before its ex-dividend date, 04 June 2018, in time for dividends payable on the 20 June 2018. Is this future income a persuasive enough catalyst for investors to think about Sundart 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. View our latest analysis for Sundart Holdings
How I analyze a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is their annual yield among the top 25% 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?
Is it able to pay the current rate of dividends from its earnings?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does Sundart Holdings fit our criteria?
Sundart Holdings has a trailing twelve-month payout ratio of 46.13%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect 1568’s payout to remain around the same level at 50.00% of its earnings, which leads to a dividend yield of 2.84%.
If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. The reality is that it is too early to consider Sundart Holdings as a dividend investment. It has only been consistently paying dividends for 2 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, Sundart Holdings has a yield of 2.07%, which is on the low-side for Consumer Durables stocks.
Next Steps:
Whilst there are few things you may like about Sundart Holdings from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three fundamental factors you should further research:
Historical Performance: What has 1568’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Sundart Holdings’s board and the CEO’s back ground.
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.
