In This Article:
On the 28 December 2018, Fujikon Industrial Holdings Limited (HKG:927) will be paying shareholders an upcoming dividend amount of HK$0.04 per share. However, investors must have bought the company’s stock before 06 December 2018 in order to qualify for the payment. That means you have only 3 days left! Should you diversify into Fujikon Industrial 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 Fujikon Industrial Holdings
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
-
Is it the top 25% annual dividend yield payer?
-
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
-
Has the amount of dividend per share grown over the past?
-
Can it afford to pay the current rate of dividends from its earnings?
-
Will the company be able to keep paying dividend based on the future earnings growth?
How does Fujikon Industrial Holdings fare?
The current trailing twelve-month payout ratio for the stock is 88%, 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.
When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time.
In terms of its peers, Fujikon Industrial Holdings has a yield of 7.0%, which is high for Consumer Durables stocks.
Next Steps:
Taking into account the dividend metrics, Fujikon Industrial Holdings ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. 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 key factors you should further research:
-
Future Outlook: What are well-informed industry analysts predicting for 927’s future growth? Take a look at our free research report of analyst consensus for 927’s outlook.
-
Historical Performance: What has 927’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
-
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.