Kerry Properties Limited (HKG:683): 3 Days To Buy Before The Ex-Dividend Date
If you are interested in cashing in on Kerry Properties Limited's (HKG:683) upcoming dividend of HK$0.95 per share, you only have 3 days left to buy the shares before its ex-dividend date, 24 May 2019, in time for dividends payable on the 06 June 2019. What does this mean for current shareholders and potential investors? Below, I will explain how holding Kerry Properties can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes.
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Check out our latest analysis for Kerry Properties
5 questions to ask before buying 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 paid dividend every year without dramatically reducing payout in the past?
Has dividend per share amount increased over the past?
Can it afford to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
Does Kerry Properties pass our checks?
The company currently pays out 26% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect 683's payout to increase to 35% of its earnings. Assuming a constant share price, this equates to a dividend yield of 4.4%. However, EPS is forecasted to fall to HK$3.84 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
Reliability 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. 683 has increased its DPS from HK$0.70 to HK$1.35 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.
In terms of its peers, Kerry Properties has a yield of 4.2%, which is high for Real Estate stocks but still below the market's top dividend payers.
Next Steps:
Considering the dividend attributes we analyzed above, Kerry Properties 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 recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I've compiled three important factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 683’s future growth? Take a look at our free research report of analyst consensus for 683’s outlook.
Valuation: What is 683 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 683 is currently mispriced by the market.
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.
