Income Investors Should Know The United International Enterprises Limited (CPH:UIE) Ex-Dividend Date

Attention dividend hunters! United International Enterprises Limited (CPH:UIE) will be distributing its dividend of US$5.00 per share on the 30 April 2019, and will start trading ex-dividend in 3 days time on the 26 April 2019. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into United International Enterprises's latest financial data to analyse its dividend attributes.

View our latest analysis for United International Enterprises

5 checks you should do on a dividend stock

If you are a dividend investor, you should always assess these five key 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 risen in the past couple of years?

  • Does earnings amply cover its dividend payments?

  • Will the company be able to keep paying dividend based on the future earnings growth?

CPSE:UIE Historical Dividend Yield, April 22nd 2019
CPSE:UIE Historical Dividend Yield, April 22nd 2019

How well does United International Enterprises fit our criteria?

The current trailing twelve-month payout ratio for the stock is 56%, 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. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.

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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again.

Compared to its peers, United International Enterprises produces a yield of 2.4%, which is on the low-side for Food stocks.

Next Steps:

If United International Enterprises is in your portfolio for cash-generating reasons, there may be better alternatives out there. 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 recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I've put together three key factors you should further examine:

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

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

  3. 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.