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Important news for shareholders and potential investors in Shimao Property Holdings Limited (HKG:813): The dividend payment of CN¥0.50 per share will be distributed into shareholder on 28 September 2018, and the stock will begin trading ex-dividend at an earlier date, 10 September 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Shimao Property Holdings’s latest financial data to analyse its dividend characteristics.
Check out our latest analysis for Shimao Property Holdings
5 checks you should use to assess a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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Does it pay an annual yield higher than 75% of dividend payers?
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Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
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Has dividend per share amount increased over the past?
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Is its earnings sufficient to payout dividend at the current rate?
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Will the company be able to keep paying dividend based on the future earnings growth?
How well does Shimao Property Holdings fit our criteria?
Shimao Property Holdings has a trailing twelve-month payout ratio of 37.2%, which means that the dividend is covered by earnings. Going forward, analysts expect 813’s payout to remain around the same level at 39.0% of its earnings, which leads to a dividend yield of around 7.0%. Moreover, EPS should increase to CN¥3.13.
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. Shareholders would have seen a few years of reduced payments in this time.
Relative to peers, Shimao Property Holdings produces a yield of 4.5%, which is high for Real Estate stocks but still below the market’s top dividend payers.
Next Steps:
Considering the dividend attributes we analyzed above, Shimao Property Holdings is definitely worth keeping an eye on for someone looking to build a dedicated income 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. There are three relevant aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for 813’s future growth? Take a look at our free research report of analyst consensus for 813’s outlook.
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Valuation: What is 813 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 813 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.