On the 28 September 2018, Dali Foods Group Company Limited (HKG:3799) will be paying shareholders an upcoming dividend amount of CN¥0.085 per share. However, investors must have bought the company’s stock before 10 September 2018 in order to qualify for the payment. That means you have only 4 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Dali Foods Group’s latest financial data to analyse its dividend characteristics.
Check out our latest analysis for Dali Foods Group
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 their annual yield among the top 25% 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 risen in the past couple of years?
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Is is able to pay the current rate of dividends from its earnings?
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Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does Dali Foods Group pass our checks?
The company currently pays out 58.2% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 57.5%, leading to a dividend yield of around 3.7%. Moreover, EPS should increase to CN¥0.30.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view Dali Foods Group 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.
Relative to peers, Dali Foods Group has a yield of 3.0%, which is high for Food stocks but still below the market’s top dividend payers.
Next Steps:
If Dali Foods Group is in your portfolio for cash-generating reasons, there may be better alternatives out there. 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 relevant factors you should further examine: