On the 24 May 2019, Churchill China plc (LON:CHH) will be paying shareholders an upcoming dividend amount of UK£0.20 per share. However, investors must have bought the company's stock before 25 April 2019 in order to qualify for the payment. That means you have only 3 days left! Should you diversify into Churchill China 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 Churchill China

How I analyze a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

• Is their annual yield among the top 25% of dividend payers?

• Does it consistently pay out dividends without missing a payment of significantly cutting payout?

• Has dividend per share amount increased over the past?

• Can it afford to pay the current rate of dividends from its earnings?

• Will it be able to continue to payout at the current rate in the future?

How well does Churchill China fit our criteria?

The company currently pays out 44% 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 42% which, assuming the share price stays the same, leads to a dividend yield of around 2.3%.

When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.

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. In the case of CHH it has increased its DPS from £0.14 to £0.29 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes CHH a true dividend rockstar.

In terms of its peers, Churchill China has a yield of 1.9%, which is on the low-side for Consumer Durables stocks.

Next Steps:

Considering the dividend attributes we analyzed above, Churchill China is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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 important factors you should further examine:

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

2. Valuation: What is CHH 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 CHH 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.

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.