In This Article:
On the 28 September 2018, Golden Wheel Tiandi Holdings Company Limited (HKG:1232) will be paying shareholders an upcoming dividend amount of CN¥0.016 per share. However, investors must have bought the company’s stock before 12 September 2018 in order to qualify for the payment. That means you have only 4 days left! Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Golden Wheel Tiandi Holdings’s most recent financial data to examine its dividend characteristics in more detail.
View our latest analysis for Golden Wheel Tiandi Holdings
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:
-
Does it pay an annual yield higher than 75% of dividend payers?
-
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
-
Has dividend per share amount increased over the past?
-
Is is able to pay the current rate of dividends from its earnings?
-
Will it have the ability to keep paying its dividends going forward?
How well does Golden Wheel Tiandi Holdings fit our criteria?
Golden Wheel Tiandi Holdings has a trailing twelve-month payout ratio of 16.5%, 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 considering the sustainability of dividends, it is also worth checking the cash flow of a company. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. The reality is that it is too early to consider Golden Wheel Tiandi Holdings as a dividend investment. It has only been consistently paying dividends for 5 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
In terms of its peers, Golden Wheel Tiandi Holdings produces a yield of 7.7%, which is high for Real Estate stocks.
Next Steps:
If Golden Wheel Tiandi Holdings is in your portfolio for cash-generating reasons, there may be better alternatives out there. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. 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 key factors you should further research: