Investors who want to cash in on CITIC Telecom International Holdings Limited’s (HKG:1883) upcoming dividend of HK$0.04 per share have only 2 days left to buy the shares before its ex-dividend date, 04 September 2018, in time for dividends payable on the 24 September 2018. Should you diversify into CITIC Telecom International Holdings and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.

Check out our latest analysis for CITIC Telecom International Holdings

What Is A Dividend Rock Star?

It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. 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 is able to continue to payout at the current rate in the future

High Yield And Dependable

CITIC Telecom International Holdings’s yield sits at 6.7%, which is high for Telecom stocks. But the real reason CITIC Telecom International Holdings 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. In the case of 1883 it has increased its DPS from HK$0.040 to HK$0.16 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 1883 a true dividend rockstar.

CITIC Telecom International Holdings has a trailing twelve-month payout ratio of 65.9%, which means that the dividend is covered by earnings. Going forward, analysts expect 1883’s payout to remain around the same level at 63.7% of its earnings, which leads to a dividend yield of around 7.6%. Furthermore, EPS should increase to HK$0.27.

Next Steps:

Investors of CITIC Telecom International Holdings can continue to expect strong dividends from the stock. With its favorable dividend characteristics, if high income generation is still the goal for your portfolio, then CITIC Telecom International Holdings is one worth keeping around. 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. Below, I’ve compiled three key aspects you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for 1883’s future growth? Take a look at our free research report of analyst consensus for 1883’s outlook.

2. Valuation: What is 1883 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 1883 is currently mispriced by the market.

3. Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.

To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.