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Attention dividend hunters! Wong’s International Holdings Limited (SEHK:99) will be distributing its dividend of HK$0.04 per share on the 21 June 2018, and will start trading ex-dividend in 3 days time on the 04 June 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 Wong’s International Holdings’s most recent financial data to examine its dividend characteristics in more detail. Check out our latest analysis for Wong’s International Holdings
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
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Is it the top 25% annual dividend yield payer?
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Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
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Has dividend per share risen in the past couple of years?
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Is it able to pay the current rate of dividends from its earnings?
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Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Wong’s International Holdings fare?
The current trailing twelve-month payout ratio for the stock is 7.48%, meaning the dividend is sufficiently 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. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. Although 99’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Relative to peers, Wong’s International Holdings produces a yield of 2.50%, which is high for Electronic stocks but still below the market’s top dividend payers.
Next Steps:
If you are building an income portfolio, then Wong’s International Holdings is a complicated choice since it has some positive aspects as well as negative ones. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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. There are three essential factors you should further examine: