In This Article:
Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. In the past 10 years Wheelock Properties (Singapore) Limited (SGX:M35) has returned an average of 4.00% per year to investors in the form of dividend payouts. Does Wheelock Properties (Singapore) tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. View our latest analysis for Wheelock Properties (Singapore)
How I analyze 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 the amount of dividend per share grown over the past?
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Is it able to pay the current rate of dividends from its earnings?
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Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Wheelock Properties (Singapore) fare?
The company currently pays out 62.31% of its earnings as a dividend, according to its trailing twelve-month data, 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. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. M35 investors will be well aware there has not been any increase in the dividend payments over the last 10 years, although the payments have at least been steady. However, income investors that value stability over growth may still find M35 appealing. In terms of its peers, Wheelock Properties (Singapore) produces a yield of 3.33%, which is high for Real Estate stocks but still below the market’s top dividend payers.
Next Steps:
If Wheelock Properties (Singapore) 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, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three pertinent aspects you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for M35’s future growth? Take a look at our free research report of analyst consensus for M35’s outlook.
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Valuation: What is M35 worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether M35 is currently mispriced by the market.
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Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.