Shares of Sino Land Company Limited (SEHK:83) will begin trading ex-dividend in 8 days. To qualify for the dividend check of HK$0.58 per share, investors must have owned the shares prior to 13 March 2018, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Sino Land’s most recent financial data to examine its dividend characteristics in more detail. See our latest analysis for Sino Land

What Is A Dividend Rock Star?

It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: Its annual yield is among the top 25% 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

The company’s dividend yield stands at 3.73%, which is high for Real Estate stocks. But the real reason Sino Land stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.

If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. 83 has increased its DPS from HK$0.35 to HK$0.53 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. The current trailing twelve-month payout ratio for the stock is 23.32%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a higher payout ratio of 65.40%, leading to a dividend yield of around 4.69%. However, EPS is forecasted to fall to HK$1.09 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.

Next Steps:

There aren’t many other stocks out there with the same track record as Sino Land, so I would certainly recommend further examining the stock if its dividend characteristics appeal to you. However, given this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three relevant aspects you should further research: