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Investors who want to cash in on China Shineway Pharmaceutical Group Limited’s (SEHK:2877) upcoming dividend of CN¥0.26 per share have only 3 days left to buy the shares before its ex-dividend date, 04 June 2018, in time for dividends payable on the 15 June 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 China Shineway Pharmaceutical Group’s most recent financial data to examine its dividend characteristics in more detail. See our latest analysis for China Shineway Pharmaceutical Group

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:

• Is it paying an annual yield above 75% of dividend payers?

• Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

• Has the amount of dividend per share grown over the past?

• Is it able to pay the current rate of dividends from its earnings?

• Will it have the ability to keep paying its dividends going forward?

Does China Shineway Pharmaceutical Group pass our checks?

The company currently pays out 42.12% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect 2877’s payout to increase to 59.97% of its earnings, which leads to a dividend yield of 4.03%. Moreover, EPS should increase to CN¥0.75. 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. Although 2877’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Compared to its peers, China Shineway Pharmaceutical Group has a yield of 2.32%, which is high for Pharmaceuticals stocks but still below the market’s top dividend payers.

Next Steps:

Considering the dividend attributes we analyzed above, China Shineway Pharmaceutical Group 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. I’ve put together three relevant factors you should further research: