Attention dividend hunters! Hon Kwok Land Investment Company Limited (HKG:160) will be distributing its dividend of HK$0.17 per share on the 18 September 2018, and will start trading ex-dividend in 2 days time on the 29 August 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Hon Kwok Land Investment Company can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.

View our latest analysis for Hon Kwok Land Investment Company

5 questions I ask before picking a dividend stock

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

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

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

• Has dividend per share amount increased over the past?

• Does earnings amply cover its dividend payments?

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

How does Hon Kwok Land Investment Company fare?

The current trailing twelve-month payout ratio for the stock is 3.0%, 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’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. 160 investors will be well aware there has not been any increase in the dividend payments over the last 10 years, although the payments have at least been steady. Though this may not be a serious red flag, strong dividend stocks should always strive to increase its payout over time.

Compared to its peers, Hon Kwok Land Investment Company generates a yield of 2.9%, which is on the low-side for Real Estate stocks.

Next Steps:

Whilst there are few things you may like about Hon Kwok Land Investment Company from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. 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, 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 fundamental factors you should further examine: