Over the past 10 years Industrial and Commercial Bank of China Limited (SEHK:1398) has grown its dividend payouts from CN¥0.15 to CN¥0.3. With a market cap of HK$2.60T, Industrial and Commercial Bank of China pays out 30.10% of its earnings, leading to a 4.39% yield. Let me elaborate on you why the stock stands out for income investors like myself. Check out our latest analysis for Industrial and Commercial Bank of China

What Is A Dividend Rock Star?

It is a stock that pays a consistent, reliable and competitive dividend over a long period of time, and is expected to continue to pay in the same manner many years to come. More specifically: Its annual yield is among the top 25% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its has increased its dividend per share amount 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 4.39%, which is high for Banks stocks. But the real reason Industrial and Commercial Bank of China stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you’re investor who wants a robust cash inflow from your portfolio over a long period of time.

If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. 1398 has increased its DPS from CN¥0.15 to CN¥0.3 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. This is an impressive feat, which makes 1398 a true dividend rockstar. The company currently pays out 30.10% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 30.09%, leading to a dividend yield of 5.21%. Furthermore, EPS should increase to CN¥0.88.

Next Steps:

There aren’t many other stocks out there with the same track record as Industrial and Commercial Bank of China, so I would certainly recommend further examining the stock if its dividend characteristics appeal to you. However, given 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 relevant factors you should further examine: