Shares of Chuang’s Consortium International Limited (SEHK:367) will begin trading ex-dividend in 2 days. To qualify for the dividend check of HK$0.03 per share, investors must have owned the shares prior to 20 December 2017, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Chuang’s Consortium International’s latest financial data to analyse its dividend characteristics. See our latest analysis for Chuang’s Consortium International

How I analyze a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

• Does it pay an annual yield higher than 75% of dividend payers?

• Has it paid dividend every year without dramatically reducing payout in the past?

• Has dividend per share amount increased over the past?

• Can it afford to pay the current rate of dividends from its earnings?

• Will it have the ability to keep paying its dividends going forward?

How well does Chuang’s Consortium International fit our criteria?

The company currently pays out 7.41% of its earnings as a dividend, meaning the dividend is sufficiently 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. 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 367’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. Compared to its peers, Chuang’s Consortium International produces a yield of 3.43%, which is high for real estate stocks.

What this means for you:

Are you a shareholder? Investors of Chuang’s Consortium International can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, Chuang’s Consortium International is one worth keeping around in your income portfolio. However, depending on your current holdings, it may be beneficial exploring other income stocks to enhance your diversification, or even look at high-growth stocks to supplement your steady income stocks. I recommend continuing your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.