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Investors who want to cash in on Tai Sang Land Development Limited’s (HKG:89) upcoming dividend of HK$0.10 per share have only 2 days left to buy the shares before its ex-dividend date, 06 September 2018, in time for dividends payable on the 24 September 2018. Should you diversify into Tai Sang Land Development 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 Tai Sang Land Development
5 checks you should use to assess a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
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Is its annual yield among the top 25% of dividend-paying companies?
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Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
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Has dividend per share risen in the past couple of years?
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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 does Tai Sang Land Development fare?
Tai Sang Land Development has a trailing twelve-month payout ratio of 6.2%, 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.
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. Dividend payments from Tai Sang Land Development have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends.
In terms of its peers, Tai Sang Land Development generates a yield of 3.8%, which is on the low-side for Real Estate stocks.
Next Steps:
After digging a little deeper into Tai Sang Land Development’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. 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 fundamental factors you should further research: