3 Days Left Until Road King Infrastructure Limited (HKG:1098) Trades Ex-Dividend
Have you been keeping an eye on Road King Infrastructure Limited's (HKG:1098) upcoming dividend of HK$0.88 per share payable on the 28 June 2019? Then you only have 3 days left before the stock starts trading ex-dividend on the 23 May 2019. Is this future income a persuasive enough catalyst for investors to think about Road King Infrastructure as an investment today? Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail.
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View our latest analysis for Road King Infrastructure
5 questions to ask before buying a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is their annual yield among the top 25% of dividend payers?
Has it paid dividend every year without dramatically reducing payout in the past?
Has it increased its dividend per share amount over the past?
Does earnings amply cover its dividend payments?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does Road King Infrastructure fit our criteria?
The company currently pays out 30% of its earnings as a dividend, according to its trailing twelve-month data, 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 you want to dive deeper into the sustainability of a certain payout ratio, you may wish to consider the cash flow of the business. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
If there is one thing that you want to be reliable in your life, it's dividend stocks and their constant income stream. Unfortunately, it is really too early to view Road King Infrastructure as a dividend investment. It has only been consistently paying dividends for 9 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
In terms of its peers, Road King Infrastructure produces a yield of 6.8%, which is high for Real Estate stocks.
Next Steps:
Taking all the above into account, Road King Infrastructure is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. 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, 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 important aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 1098’s future growth? Take a look at our free research report of analyst consensus for 1098’s outlook.
Valuation: What is 1098 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 1098 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
