Yahoo Finance CK Infrastructure Holdings Limited (HKG:1038): What You Have To Know Before Buying For The Upcoming Dividend
On the 06 September 2018, CK Infrastructure Holdings Limited (HKG:1038) will be paying shareholders an upcoming dividend amount of HK$0.68 per share. However, investors must have bought the company’s stock before 27 August 2018 in order to qualify for the payment. That means you have only 2 days left! What does this mean for current shareholders and potential investors? Below, I will explain how holding CK Infrastructure Holdings can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.
See our latest analysis for CK Infrastructure Holdings
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 it paying an annual yield above 75% of dividend payers?
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?
Is its earnings sufficient to payout dividend at the current rate?
Will it have the ability to keep paying its dividends going forward?
How well does CK Infrastructure Holdings fit our criteria?
The current trailing twelve-month payout ratio for the stock is 57.13%, which means that the dividend is covered by earnings. Going forward, analysts expect 1038’s payout to remain around the same level at 56.34% of its earnings, which leads to a dividend yield of 4.57%. Furthermore, EPS should increase to HK$4.48.
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. 1038 has increased its DPS from HK$1.1 to HK$2.38 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes 1038 a true dividend rockstar.
Compared to its peers, CK Infrastructure Holdings produces a yield of 4.15%, which is high for Electric Utilities stocks but still below the market’s top dividend payers.
Next Steps:
With this in mind, I definitely rank CK Infrastructure Holdings as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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 essential factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for 1038’s future growth? Take a look at our free research report of analyst consensus for 1038’s outlook.
Valuation: What is 1038 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 1038 is currently mispriced by the market.
Other 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
