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If you are an income investor, then Wasion Holdings Limited (HKG:3393) should be on your radar. Wasion Holdings Limited, an investment holding company, researches, develops, produces, and sells energy metering and energy efficiency management for energy supply industries in the People’s Republic of China and internationally. Over the past 10 years, the HK$3.8b market cap company has been growing its dividend payments, from CN¥0.084 to CN¥0.19. Currently yielding 5.8%, let’s take a closer look at Wasion Holdings’s dividend profile.
View our latest analysis for Wasion Holdings
What Is A Dividend Rock Star?
It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically:
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It is paying an annual yield above 75% of dividend payers
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It has paid dividend every year without dramatically reducing payout in the past
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Its dividend per share amount has increased over the past
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It is able to pay the current rate of dividends from its earnings
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It is able to continue to payout at the current rate in the future
High Yield And Dependable
Wasion Holdings’s dividend yield stands at 5.8%, which is high for Electronic stocks. But the real reason Wasion Holdings stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you’re investor who wants a robust cash inflow from your portfolio over a long period of time.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of 3393 it has increased its DPS from CN¥0.084 to CN¥0.19 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock.
The current trailing twelve-month payout ratio for the stock is 72%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 62% which, assuming the share price stays the same, leads to a dividend yield of around 6.7%. However, EPS should increase to CN¥0.33, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
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.