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Investors who want to cash in on CITIC Resources Holdings Limited’s (HKG:1205) upcoming dividend of HK$0.05 per share have only 1 days left to buy the shares before its ex-dividend date, 26 June 2018, in time for dividends payable on the 17 July 2018. Is this future income a persuasive enough catalyst for investors to think about CITIC Resources Holdings as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. View out our latest analysis for CITIC Resources Holdings

5 questions I ask before picking a dividend stock

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

• Is its annual yield among the top 25% of dividend-paying companies?

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

• Has dividend per share risen in the past couple of years?

• Does earnings amply cover its dividend payments?

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

How does CITIC Resources Holdings fare?

The current trailing twelve-month payout ratio for the stock is 37.90%, meaning the dividend is sufficiently 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’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. The reality is that it is too early to consider CITIC Resources Holdings as a dividend investment. Last year was the company’s first dividend payment, so it is certainly early days. The standard practice for reliable payers is to look for 10 or so years of track record.

In terms of its peers, CITIC Resources Holdings produces a yield of 2.94%, which is on the low-side for Trade Distributors stocks.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in CITIC Resources Holdings for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering 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 fundamental factors you should look at: