On the 14 June 2018, Kingboard Laminates Holdings Limited (SEHK:1888) will be paying shareholders an upcoming dividend amount of HK$0.53 per share. However, investors must have bought the company’s stock before 31 May 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 Kingboard Laminates Holdings’s latest financial data to analyse its dividend characteristics. View our latest analysis for Kingboard Laminates Holdings

5 questions to ask before buying a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

• Is its annual yield among the top 25% of dividend payers?

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

• Has it increased its dividend per share amount over the past?

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

• Will it be able to continue to payout at the current rate in the future?

How well does Kingboard Laminates Holdings fit our criteria?

Kingboard Laminates Holdings has a trailing twelve-month payout ratio of 69.53%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 68.43%, leading to a dividend yield of 8.36%. Moreover, EPS should increase to HK$1.34. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Compared to its peers, Kingboard Laminates Holdings generates a yield of 9.24%, which is high for Electronic stocks.

Next Steps:

Taking into account the dividend metrics, Kingboard Laminates Holdings ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three important factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for 1888’s future growth? Take a look at our free research report of analyst consensus for 1888’s outlook.

2. Valuation: What is 1888 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 1888 is currently mispriced by the market.

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.