Important news for shareholders and potential investors in Memtech International Ltd (SGX:BOL): The dividend payment of $0.06 per share will be distributed into shareholder on 18 May 2018, and the stock will begin trading ex-dividend at an earlier date, 02 May 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Memtech International can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View our latest analysis for Memtech International

5 checks you should do on a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

• Is it the top 25% annual dividend yield payer?

• Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

• Has dividend per share risen in the past couple of years?

• 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 Memtech International fit our criteria?

The company currently pays out 41.05% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect BOL’s payout to remain around the same level at 39.77% of its earnings, which leads to a dividend yield of around 4.76%. Furthermore, EPS is forecasted to fall to $0.09 in the upcoming year. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Dividend payments from Memtech International have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves. Compared to its peers, Memtech International produces a yield of 4.26%, which is high for Electronic stocks but still below the market’s top dividend payers.

Next Steps:

If you are building an income portfolio, then Memtech International is a complicated choice since it has some positive aspects as well as negative ones. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. 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. I’ve put together three fundamental factors you should further research: