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Attention dividend hunters! China State Construction International Holdings Limited (SEHK:3311) will be distributing its dividend of HK$0.2 per share on the 04 July 2018, and will start trading ex-dividend in 2 days time on the 06 June 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into China State Construction International Holdings’s latest financial data to analyse its dividend attributes. See our latest analysis for China State Construction 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 it the top 25% annual dividend yield payer?
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Has it paid dividend every year without dramatically reducing payout in the past?
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Has dividend per share risen in the past couple of years?
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Is it able to pay the current rate of dividends from its earnings?
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Will the company be able to keep paying dividend based on the future earnings growth?
How well does China State Construction International Holdings fit our criteria?
The company currently pays out 29.45% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect 3311’s payout to remain around the same level at 28.64% of its earnings, which leads to a dividend yield of 4.69%. Furthermore, EPS should increase to HK$1.33. 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. Although 3311’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. In terms of its peers, China State Construction International Holdings generates a yield of 3.61%, which is high for Construction stocks but still below the market’s top dividend payers.
Next Steps:
With this in mind, I definitely rank China State Construction International Holdings as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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 pertinent aspects you should further research: