Yahoo Finance

Have you been keeping an eye on Powerlong Real Estate Holdings Limited’s (HKG:1238) upcoming dividend of CN¥0.068 per share payable on the 15 November 2018? Then you only have 4 days left before the stock starts trading ex-dividend on the 30 October 2018. Is this future income a persuasive enough catalyst for investors to think about Powerlong Real Estate Holdings as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.

See our latest analysis for Powerlong Real Estate Holdings

Here’s how I find good dividend stocks

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 paid dividend every year without dramatically reducing payout in the past?

• Has dividend per share amount increased over the past?

• Can it afford 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?

How well does Powerlong Real Estate Holdings fit our criteria?

The company currently pays out 27% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect 1238’s payout to remain around the same level at 25% of its earnings, which leads to a dividend yield of 12%.

When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.

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 Powerlong Real Estate Holdings as a dividend investment. It has only been consistently paying dividends for 9 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.

In terms of its peers, Powerlong Real Estate Holdings has a yield of 8.3%, which is high for Real Estate stocks.

Next Steps:

Taking into account the dividend metrics, Powerlong Real Estate 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. Below, I’ve compiled three fundamental aspects you should further research: