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Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. SAS Dragon Holdings Limited (HKG:1184) has returned to shareholders over the past 10 years, an average dividend yield of 7.00% annually. Should it have a place in your portfolio? Let’s take a look at S.A.S. Dragon Holdings in more detail. View out our latest analysis for S.A.S. Dragon Holdings

5 questions I ask before picking 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?

• 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?

• Can it afford to pay the current rate of dividends from its earnings?

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

Does S.A.S. Dragon Holdings pass our checks?

S.A.S. Dragon Holdings has a trailing twelve-month payout ratio of 41.24%, 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’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although 1184’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time.

Relative to peers, S.A.S. Dragon Holdings has a yield of 7.63%, which is high for Electronic stocks.

Next Steps:

With this in mind, I definitely rank S.A.S. Dragon 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 relevant factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for 1184’s future growth? Take a look at our free research report of analyst consensus for 1184’s outlook.

2. Historical Performance: What has 1184’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

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.