In This Article:
Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. In the past 10 years ANTA Sports Products Limited (SEHK:2020) has returned an average of 4.00% per year to investors in the form of dividend payouts. Does ANTA Sports Products tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. Check out our latest analysis for ANTA Sports Products
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 the top 25% annual dividend yield payer?
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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 it have the ability to keep paying its dividends going forward?
How well does ANTA Sports Products fit our criteria?
ANTA Sports Products has a trailing twelve-month payout ratio of 63.37%, which means that the dividend is covered by earnings. Going forward, analysts expect 2020’s payout to increase to 73.01% of its earnings, which leads to a dividend yield of 3.39%. Moreover, EPS should increase to CN¥1.27. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. 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, ANTA Sports Products produces a yield of 2.27%, which is on the low-side for Luxury stocks.
Next Steps:
With this in mind, I definitely rank ANTA Sports Products 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. Below, I’ve compiled three important aspects you should further research:
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1. Future Outlook: What are well-informed industry analysts predicting for 2020’s future growth? Take a look at our free research report of analyst consensus for 2020’s outlook.
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2. Valuation: What is 2020 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 2020 is currently mispriced by the market.
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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.