Yahoo Finance Henan Jinma Energy Company Limited (HKG:6885): 4 Days To Buy Before The Ex-Dividend Date
Important news for shareholders and potential investors in Henan Jinma Energy Company Limited (HKG:6885): The dividend payment of CN¥0.05 per share will be distributed to shareholders on 12 November 2018, and the stock will begin trading ex-dividend at an earlier date, 15 October 2018. Should you diversify into Henan Jinma Energy 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 Henan Jinma Energy
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is it the top 25% annual dividend yield payer?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has the amount of dividend per share grown over the past?
Does earnings amply cover its dividend payments?
Will it have the ability to keep paying its dividends going forward?
How well does Henan Jinma Energy fit our criteria?
The current trailing twelve-month payout ratio for the stock is 19%, 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.
When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
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. The reality is that it is too early to consider Henan Jinma Energy as a dividend investment. It has only been paying out dividend for the past one year. Generally, the rule of thumb for determining whether a stock is a reliable dividend payer is that it should be consistently paying dividends for the past 10 years or more. Clearly there’s a long road ahead before we can ascertain whether 6885 one as a stable dividend player.
In terms of its peers, Henan Jinma Energy produces a yield of 2.3%, which is on the low-side for Metals and Mining stocks.
Next Steps:
Now you know to keep in mind the reason why investors should be careful investing in Henan Jinma Energy for the dividend. 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 urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three pertinent aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 6885’s future growth? Take a look at our free research report of analyst consensus for 6885’s outlook.
Valuation: What is 6885 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 6885 is currently mispriced by the market.
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.
