If you are interested in cashing in on Wah Ha Realty Company Limited’s (SEHK:278) upcoming dividend of HK$0.11 per share, you only have 3 days left to buy the shares before its ex-dividend date, 22 December 2017, in time for dividends payable on the 19 January 2018. Is this future income a persuasive enough catalyst for investors to think about Wah Ha Realty 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. View our latest analysis for Wah Ha Realty
5 checks you should do on a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
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Is it the top 25% annual dividend yield payer?
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Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
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Has dividend per share amount increased over the past?
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Is its earnings sufficient to payout dividend at the current rate?
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Will the company be able to keep paying dividend based on the future earnings growth?
How well does Wah Ha Realty fit our criteria?
Wah Ha Realty has a payout ratio of 18.93%, meaning the dividend is sufficiently 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 there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Although 278’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time. Compared to its peers, Wah Ha Realty generates a yield of 3.76%, which is high for real estate stocks.
What this means for you:
Are you a shareholder? Investors of Wah Ha Realty can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, Wah Ha Realty is one worth keeping around in your income portfolio. However, depending on your portfolio composition, it may be worth exploring other dividend stocks to improve your diversification, or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Taking into account the dividend metrics, Wah Ha Realty ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Whether or not you like Wah Ha Realty as a dividend stock, it’s still worth checking the price tag. Can you buy Wah Ha Realty for a great price? Take a look at our latest free analysis to find out!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.