Attention dividend hunters! Agile Group Holdings Limited (SEHK:3383) will be distributing its dividend of CN¥0.68 per share on the 01 June 2018, and will start trading ex-dividend in 2 days time on the 17 May 2018. Is this future income a persuasive enough catalyst for investors to think about Agile Group 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 Agile Group Holdings

5 questions I ask before picking a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

• Is its annual yield among the top 25% of dividend payers?

• Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

• Has dividend per share amount increased over the past?

• Is its earnings sufficient to payout dividend at the current rate?

• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

How does Agile Group Holdings fare?

The company currently pays out 48.30% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect 3383’s payout to remain around the same level at 44.68% of its earnings, which leads to a dividend yield of 8.44%. Furthermore, EPS should increase to CN¥1.93. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although 3383’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. In terms of its peers, Agile Group Holdings has a yield of 5.71%, which is high for Real Estate stocks.

Next Steps:

With this in mind, I definitely rank Agile Group Holdings as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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 relevant aspects you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for 3383’s future growth? Take a look at our free research report of analyst consensus for 3383’s outlook.

2. Valuation: What is 3383 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 3383 is currently mispriced by the market.

3. 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.