There is a lot to be liked about Yuexiu Property Company Limited (SEHK:123) as an income stock, over the past 10 years it has returned an average of 4.00% per year. The company currently pays out a dividend yield of 5.87% to shareholders, making it a relatively attractive dividend stock. Does Yuexiu Property tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. Check out our latest analysis for Yuexiu Property

5 checks you should do on a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

• Is it paying an annual yield above 75% of dividend payers?

• Has it paid dividend every year without dramatically reducing payout in the past?

• Has the amount of dividend per share grown 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 does Yuexiu Property fare?

The company currently pays out 41.70% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect 123’s payout to increase to 68.01% of its earnings, which leads to a dividend yield of around 8.13%. Furthermore, EPS should increase to CN¥0.2. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward. 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. 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. Relative to peers, Yuexiu Property has a yield of 5.87%, which is high for Real Estate stocks.

Next Steps:

With this in mind, I definitely rank Yuexiu Property 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, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three pertinent aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for 123’s future growth? Take a look at our free research report of analyst consensus for 123’s outlook.

2. Valuation: What is 123 worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether 123 is currently mispriced by the market.

3. 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 pass 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.