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Important news for shareholders and potential investors in Sing Investments & Finance Limited (SGX:S35): The dividend payment of SGD0.07 per share will be distributed into shareholder on 09 May 2018, and the stock will begin trading ex-dividend at an earlier date, 26 April 2018. Is this future income a persuasive enough catalyst for investors to think about Sing Investments & Finance 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. View our latest analysis for Sing Investments & Finance

5 questions to ask before buying a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

• 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 it increased its dividend per share amount over the past?

• Is it able 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 does Sing Investments & Finance fare?

The company currently pays out 48.62% of its earnings as a dividend, according to its trailing twelve-month data, 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 S35’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, Sing Investments & Finance produces a yield of 4.38%, 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 Sing Investments & Finance 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, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three key aspects you should look at: