Yahoo Finance

Investors who want to cash in on Oriental University City Holdings (H.K.) Limited’s (HKG:8067) upcoming dividend of CN¥0.05 per share have only 4 days left to buy the shares before its ex-dividend date, 20 March 2019, in time for dividends payable on the 08 April 2019. Should you diversify into Oriental University City Holdings (H.K.) 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.

See our latest analysis for Oriental University City Holdings (H.K.)

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:

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

• Does it consistently pay out dividends without missing a payment of significantly cutting payout?

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

• Is its earnings sufficient to payout dividend at the current rate?

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

How does Oriental University City Holdings (H.K.) fare?

Oriental University City Holdings (H.K.) has a trailing twelve-month payout ratio of 11%, 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 thinking about whether a dividend is sustainable, another factor to consider is the cash flow. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.

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. Unfortunately, it is really too early to view Oriental University City Holdings (H.K.) as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.

Compared to its peers, Oriental University City Holdings (H.K.) generates a yield of 6.1%, which is high for Real Estate stocks.

Next Steps:

Whilst there are few things you may like about Oriental University City Holdings (H.K.) from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. 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. There are three fundamental factors you should look at: