On the 04 June 2018, CITIC Telecom International Holdings Limited (SEHK:1883) will be paying shareholders an upcoming dividend amount of HK$0.13 per share. However, investors must have bought the company’s stock before 16 May 2018 in order to qualify for the payment. That means you have only 2 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into CITIC Telecom International Holdings’s latest financial data to analyse its dividend attributes. See our latest analysis for CITIC Telecom International Holdings

What Is A Dividend Rock Star?

It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically: It is paying an annual yield above 75% of dividend payers It consistently pays out dividend without missing a payment or significantly cutting payout Its dividend per share amount has increased over the past It is able to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward

High Yield And Dependable

CITIC Telecom International Holdings’s dividend yield stands at 6.87%, which is high for Telecom stocks. But the real reason CITIC Telecom International Holdings stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you’re investor who wants a robust cash inflow from your portfolio over a long period of time.

If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of 1883 it has increased its DPS from HK$0.04 to HK$0.16 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. The current trailing twelve-month payout ratio for the stock is 64.28%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 64.71%, leading to a dividend yield of around 7.34%. In addition to this, EPS should increase to HK$0.26.

Next Steps:

There aren’t many other stocks out there with the same track record as CITIC Telecom International Holdings, so I would certainly recommend further examining the stock if its dividend characteristics appeal to you. However, given 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. Below, I’ve compiled three fundamental aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for 1883’s future growth? Take a look at our free research report of analyst consensus for 1883’s outlook.

2. Valuation: What is 1883 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 1883 is currently mispriced by the market.

3. Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.

To help readers see pass 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.