Have you been keeping an eye on International Housewares Retail Company Limited’s (SEHK:1373) upcoming dividend of HK$0.05 per share payable on the 26 January 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 12 January 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine International Housewares Retail’s latest financial data to analyse its dividend characteristics. View our latest analysis for International Housewares Retail
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key metrics:
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Is it paying an annual yield above 75% of dividend payers?
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Does it consistently pay out dividends without missing a payment of significantly cutting payout?
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Has dividend per share amount increased over the past?
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Is is able to pay the current rate of dividends from its earnings?
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Will the company be able to keep paying dividend based on the future earnings growth?
Does International Housewares Retail pass our checks?
The current payout ratio for the stock is 83.52%, 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. 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. Unfortunately, it is really too early to view International Housewares Retail 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. Compared to its peers, International Housewares Retail generates a yield of 6.88%, which is high for specialty retail stocks.
What this means for you:
Are you a shareholder? If International Housewares Retail is in your portfolio for cash-generating reasons, there may be better alternatives out there. It may be valuable exploring other income stocks as alternatives to International Housewares Retail or even look at high-growth stocks to complement your steady income stocks. I encourage you to continue your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Taking all the above into account, International Housewares Retail is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Check our latest free fundmental analysis to explore other aspects of International Housewares Retail.
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.