Yanzhou Coal Mining Company Limited (HKG:1171): Dividend Is Coming In 2 Days, Should You Buy?

Investors who want to cash in on Yanzhou Coal Mining Company Limited’s (SEHK:1171) upcoming dividend of CN¥0.48 per share have only 2 days left to buy the shares before its ex-dividend date, 30 May 2018, in time for dividends payable on the 13 July 2018. Should you diversify into Yanzhou Coal Mining 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. View our latest analysis for Yanzhou Coal Mining

5 checks you should use to assess a dividend stock

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

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

• Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

• Has dividend per share amount increased 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?

SEHK:1171 Historical Dividend Yield May 27th 18

How does Yanzhou Coal Mining fare?

The company currently pays out 32.64% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 35.53%, leading to a dividend yield of 5.72%. In addition to this, EPS should increase to CN¥1.62. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although 1171’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. Relative to peers, Yanzhou Coal Mining has a yield of 5.38%, which is high for Oil and Gas stocks.

Next Steps:

With these dividend metrics in mind, I definitely rank Yanzhou Coal Mining as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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 fundamental factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for 1171’s future growth? Take a look at our free research report of analyst consensus for 1171’s outlook.

2. Valuation: What is 1171 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 1171 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.