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Attention dividend hunters! Oxley Holdings Limited (SGX:5UX) will be distributing its dividend of SGD0.01 per share on the 15 May 2018, and will start trading ex-dividend in 2 days time on the 03 May 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Oxley Holdings’s latest financial data to analyse its dividend characteristics. View our latest analysis for Oxley Holdings

5 questions I ask before picking a dividend stock

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

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

• Does it consistently pay out dividends without missing a payment of significantly cutting payout?

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

• Is its earnings sufficient to payout dividend at the current rate?

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

How well does Oxley Holdings fit our criteria?

The current trailing twelve-month payout ratio for the stock is 25.78%, 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 is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Unfortunately, it is really too early to view Oxley Holdings as a dividend investment. It has only been consistently paying dividends for 7 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Relative to peers, Oxley Holdings generates a yield of 2.38%, which is on the low-side for Real Estate stocks.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in Oxley 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, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three essential factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for 5UX’s future growth? Take a look at our free research report of analyst consensus for 5UX’s outlook.

2. Valuation: What is 5UX 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 5UX is currently mispriced by the market.

3. 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.