Important news for shareholders and potential investors in National Electronics Holdings Limited (HKG:213): The dividend payment of HK$0.04 per share will be distributed into shareholder on 14 September 2018, and the stock will begin trading ex-dividend at an earlier date, 30 August 2018. Should you diversify into National Electronics Holdings and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.
View our latest analysis for National Electronics Holdings
5 checks you should use to assess a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
-
Does it pay an annual yield higher than 75% of dividend payers?
-
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
-
Has it increased its dividend per share amount over the past?
-
Is its earnings sufficient to payout dividend at the current rate?
-
Will it have the ability to keep paying its dividends going forward?
How well does National Electronics Holdings fit our criteria?
The company currently pays out 16.3% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is 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. 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, National Electronics Holdings produces a yield of 3.9%, which is high for Luxury stocks but still below the market’s top dividend payers.
Next Steps:
If National Electronics Holdings is in your portfolio for cash-generating reasons, there may be better alternatives out there. 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 urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three relevant factors you should further research: