Have you been keeping an eye on Lifestyle International Holdings Limited’s (SEHK:1212) upcoming dividend of HK$0.34 per share payable on the 23 May 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 09 May 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Lifestyle International Holdings’s latest financial data to analyse its dividend characteristics. Check out our latest analysis for Lifestyle International Holdings
5 questions I ask before picking a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
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Is its annual yield among the top 25% of dividend-paying companies?
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Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
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Has it increased its dividend per share amount over the past?
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Can it afford to pay the current rate of dividends from its earnings?
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Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Lifestyle International Holdings fare?
Lifestyle International Holdings has a trailing twelve-month payout ratio of 35.23%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect 1212’s payout to increase to 52.84% of its earnings, which leads to a dividend yield of around 4.34%. However, EPS is forecasted to fall to HK$1.18 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. 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. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. In terms of its peers, Lifestyle International Holdings has a yield of 4.23%, which is on the low-side for Multiline Retail stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank Lifestyle International Holdings as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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: