Important news for shareholders and potential investors in Sino-Ocean Group Holding Limited (SEHK:3377): The dividend payment of CN¥0.16 per share will be distributed into shareholder on 05 July 2018, and the stock will begin trading ex-dividend at an earlier date, 23 May 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Sino-Ocean Group Holding can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. Check out our latest analysis for Sino-Ocean Group Holding

How I analyze a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

• Does it pay an annual yield higher than 75% of dividend payers?

• 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?

• Is it able to pay the current rate of dividends from its earnings?

• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

Does Sino-Ocean Group Holding pass our checks?

The current trailing twelve-month payout ratio for the stock is 39.41%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 43.23%, leading to a dividend yield of around 7.35%. In addition to this, EPS should increase to CN¥0.71. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time. Compared to its peers, Sino-Ocean Group Holding has a yield of 5.68%, which is high for Real Estate stocks.

Next Steps:

Taking into account the dividend metrics, Sino-Ocean Group Holding 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. Below, I’ve compiled three important aspects you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for 3377’s future growth? Take a look at our free research report of analyst consensus for 3377’s outlook.

2. Valuation: What is 3377 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 3377 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.