Yahoo Finance Interested In Thakral Corporation Ltd (SGX:AWI)’s Upcoming US$0.02 Dividend? You Have 1 Days Left
On the 30 November 2018, Thakral Corporation Ltd (SGX:AWI) will be paying shareholders an upcoming dividend amount of US$0.02 per share. However, investors must have bought the company’s stock before 20 November 2018 in order to qualify for the payment. That means you have only 1 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Thakral’s latest financial data to analyse its dividend characteristics.
View our latest analysis for Thakral
How I analyze a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is their annual yield among the top 25% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share amount increased 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 does Thakral fare?
The current trailing twelve-month payout ratio for AWI is 91%, which means that the dividend is not well-covered by its 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 considering the sustainability of dividends, it is also worth checking the cash flow of a company. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
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. Unfortunately, it is really too early to view Thakral as a dividend investment. It has only been consistently paying dividends for 8 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
Relative to peers, Thakral generates a yield of 8.6%, which is high for Retail Distributors stocks.
Next Steps:
Now you know to keep in mind the reason why investors should be careful investing in Thakral for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering 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. I’ve put together three essential aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for AWI’s future growth? Take a look at our free research report of analyst consensus for AWI’s outlook.
Valuation: What is AWI 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 AWI is currently mispriced by the market.
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.
