In This Article:
On the 21 September 2018, Bauhaus International (Holdings) Limited (HKG:483) will be paying shareholders an upcoming dividend amount of HK$0.075 per share. However, investors must have bought the company’s stock before 05 September 2018 in order to qualify for the payment. That means you have only 2 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Bauhaus International (Holdings)’s latest financial data to analyse its dividend characteristics.
See our latest analysis for Bauhaus International (Holdings)
5 checks you should use to assess a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
-
Is it the top 25% annual dividend yield payer?
-
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
-
Has it increased its dividend per share amount over the past?
-
Is is able 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 well does Bauhaus International (Holdings) fit our criteria?
Bauhaus International (Holdings) has a trailing twelve-month payout ratio of 67.9%, 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. Not only have dividend payouts from Bauhaus International (Holdings) fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves.
Relative to peers, Bauhaus International (Holdings) generates a yield of 5.4%, which is high for Luxury stocks but still below the market’s top dividend payers.
Next Steps:
After digging a little deeper into Bauhaus International (Holdings)’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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 key factors you should further examine: