In This Article:
Investors who want to cash in on CCT Fortis Holdings Limited’s (HKG:138) upcoming dividend of HK$0.035 per share have only 4 days left to buy the shares before its ex-dividend date, 12 September 2018, in time for dividends payable on the 04 October 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at CCT Fortis Holdings’s most recent financial data to examine its dividend characteristics in more detail.
See our latest analysis for CCT Fortis Holdings
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
-
Is it the top 25% annual dividend yield payer?
-
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
-
Has the amount of dividend per share grown over the past?
-
Can it afford to pay the current rate of dividends from its earnings?
-
Will the company be able to keep paying dividend based on the future earnings growth?
How does CCT Fortis Holdings fare?
The company currently pays out 51.6% of its earnings as a dividend, according to its trailing twelve-month data, 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 there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. 138 has increased its DPS from HK$0.060 to HK$0.070 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.
In terms of its peers, CCT Fortis Holdings generates a yield of 8.5%, which is high for Capital Markets stocks.
Next Steps:
With this in mind, I definitely rank CCT Fortis Holdings 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 factors you should further research:
-
Future Outlook: What are well-informed industry analysts predicting for 138’s future growth? Take a look at our free research report of analyst consensus for 138’s outlook.
-
Valuation: What is 138 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 138 is currently mispriced by the market.
-
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.