Attention dividend hunters! Chow Sang Sang Holdings International Limited (HKG:116) will be distributing its dividend of HK$0.15 per share on the 21 September 2018, and will start trading ex-dividend in 3 days time on the 07 September 2018. 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 Chow Sang Sang Holdings International’s most recent financial data to examine its dividend characteristics in more detail.

Check out our latest analysis for Chow Sang Sang Holdings International

How I analyze 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 its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

• Has dividend per share amount increased over the past?

• Is its earnings sufficient to payout dividend at the current rate?

• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

Does Chow Sang Sang Holdings International pass our checks?

Chow Sang Sang Holdings International has a trailing twelve-month payout ratio of 35.4%, which means that the dividend is covered by earnings. Going forward, analysts expect 116’s payout to increase to 40.3% of its earnings, which leads to a dividend yield of around 4.2%. In addition to this, EPS should increase to HK$1.61. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward.

If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. 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.

Compared to its peers, Chow Sang Sang Holdings International generates a yield of 3.2%, which is on the low-side for Specialty Retail stocks.

Next Steps:

With this in mind, I definitely rank Chow Sang Sang Holdings International 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, 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. Below, I’ve compiled three important aspects you should further examine: