Yahoo Finance Is Buying K Wah International Holdings Limited (HKG:173) For Its Upcoming HK$0.06 Dividend A Good Choice?
On the 22 October 2018, K Wah International Holdings Limited (HKG:173) will be paying shareholders an upcoming dividend amount of HK$0.06 per share. However, investors must have bought the company’s stock before 11 September 2018 in order to qualify for the payment. That means you have only 4 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine K. Wah International Holdings’s latest financial data to analyse its dividend characteristics.
View our latest analysis for K. Wah International Holdings
How I analyze a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has the amount of dividend per share grown over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will the company be able to keep paying dividend based on the future earnings growth?
How well does K. Wah International Holdings fit our criteria?
The current trailing twelve-month payout ratio for the stock is 25.4%, which means that the dividend is 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.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Although 173’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time.
In terms of its peers, K. Wah International Holdings produces a yield of 4.4%, which is high for Real Estate stocks but still below the market’s top dividend payers.
Next Steps:
If K. Wah International Holdings is in your portfolio for cash-generating reasons, there may be better alternatives out there. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three key aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for 173’s future growth? Take a look at our free research report of analyst consensus for 173’s outlook.
Historical Performance: What has 173’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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 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.
