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If you are interested in cashing in on Allied Group Limited’s (HKG:373) upcoming dividend of HK$0.15 per share, you only have 2 days left to buy the shares before its ex-dividend date, 03 September 2018, in time for dividends payable on the 19 September 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Allied Group can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.

See our latest analysis for Allied Group

Here’s how I find good dividend stocks

If you are a dividend investor, you should always assess these five key metrics:

• Is it paying an annual yield above 75% of dividend payers?

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

• Has dividend per share risen in the past couple of years?

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

• Will it have the ability to keep paying its dividends going forward?

Does Allied Group pass our checks?

The current trailing twelve-month payout ratio for the stock is 16.0%, 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’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although 373’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again.

In terms of its peers, Allied Group produces a yield of 5.2%, which is high for Consumer Finance stocks but still below the market’s top dividend payers.

Next Steps:

Whilst there are few things you may like about Allied Group from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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 research: