Investors who want to cash in on Vantage International (Holdings) Limited’s (HKG:15) upcoming dividend of HK$0.02 per share have only 2 days left to buy the shares before its ex-dividend date, 06 September 2018, in time for dividends payable on the 21 September 2018. Is this future income a persuasive enough catalyst for investors to think about Vantage International (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 Vantage International (Holdings)
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key metrics:
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Is their annual yield among the top 25% of dividend payers?
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Does it consistently pay out dividends without missing a payment of significantly cutting payout?
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Has dividend per share risen in the past couple of years?
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Is its earnings sufficient to payout dividend at the current rate?
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Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Vantage International (Holdings) fare?
Vantage International (Holdings) has a trailing twelve-month payout ratio of 8.4%, 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. Unfortunately, it is really too early to view Vantage International (Holdings) as a dividend investment. It has only been consistently paying dividends for 5 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Relative to peers, Vantage International (Holdings) has a yield of 2.6%, which is on the low-side for Construction stocks.
Next Steps:
Now you know to keep in mind the reason why investors should be careful investing in Vantage International (Holdings) for the dividend. 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 urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three key factors you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for 15’s future growth? Take a look at our free research report of analyst consensus for 15’s outlook.
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Valuation: What is 15 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 15 is currently mispriced by the market.
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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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.