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Shares of CK Asset Holdings Limited (HKG:1113) will begin trading ex-dividend in 2 days. To qualify for the dividend check of HK$0.47 per share, investors must have owned the shares prior to 03 September 2018, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Is this future income a persuasive enough catalyst for investors to think about CK Asset Holdings 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.

Check out our latest analysis for CK Asset Holdings

Here’s how I find good dividend stocks

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

• Is its annual yield among the top 25% of dividend-paying companies?

• Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

• Has the amount of dividend per share grown over the past?

• Can it afford to pay the current rate of dividends from its earnings?

• Will it be able to continue to payout at the current rate in the future?

How well does CK Asset Holdings fit our criteria?

CK Asset Holdings has a trailing twelve-month payout ratio of 16.2%, which means that the dividend is covered by earnings. Going forward, analysts expect 1113’s payout to increase to 31.6% of its earnings, which leads to a dividend yield of around 3.7%. However, EPS is forecasted to fall to HK$7.97 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.

If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Unfortunately, it is really too early to view CK Asset Holdings as a dividend investment. It has only been consistently paying dividends for 3 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.

Compared to its peers, CK Asset Holdings produces a yield of 3.1%, which is on the low-side for Real Estate stocks.

Next Steps:

If CK Asset 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, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three key factors you should further examine: