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On the 31 May 2018, Ho Bee Land Limited (SGX:H13) will be paying shareholders an upcoming dividend amount of SGD0.1 per share. However, investors must have bought the company’s stock before 15 May 2018 in order to qualify for the payment. That means you have only 3 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Ho Bee Land’s latest financial data to analyse its dividend characteristics. See our latest analysis for Ho Bee Land
5 questions to ask before buying a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five 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 it increased its dividend per share amount over the past?
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Does earnings amply cover its dividend payments?
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Will the company be able to keep paying dividend based on the future earnings growth?
Does Ho Bee Land pass our checks?
The current trailing twelve-month payout ratio for the stock is 21.98%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a higher payout ratio of 48.18%, leading to a dividend yield of 2.97%. However, EPS is forecasted to fall to SGD0.2 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. 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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. In terms of its peers, Ho Bee Land generates a yield of 2.97%, which is high for Real Estate stocks but still below the market’s top dividend payers.
Next Steps:
With these dividend metrics in mind, I definitely rank Ho Bee Land as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. There are three key aspects you should look at:
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Future Outlook: What are well-informed industry analysts predicting for H13’s future growth? Take a look at our free research report of analyst consensus for H13’s outlook.
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Valuation: What is H13 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 H13 is currently mispriced by the market.
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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.