Shimao Property Holdings Limited (HKG:813): Ex-Dividend Is In 2 Days, Should You Buy?

On the 09 July 2018, Shimao Property Holdings Limited (SEHK:813) will be paying shareholders an upcoming dividend amount of CN¥0.6 per share. However, investors must have bought the company’s stock before 21 June 2018 in order to qualify for the payment. That means you have only 2 days left! Should you diversify into Shimao Property Holdings and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for Shimao Property Holdings

5 questions to ask before buying a dividend stock

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

• Is its annual yield among the top 25% of dividend-paying companies?

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

• Has the amount of dividend per share grown over the past?

• Can it afford to pay the current rate of dividends from its earnings?

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

SEHK:813 Historical Dividend Yield Jun 18th 18

Does Shimao Property Holdings pass our checks?

The company currently pays out 35.83% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect 813’s payout to increase to 39.47% of its earnings, which leads to a dividend yield of around 6.07%. Moreover, EPS should increase to CN¥2.74. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors 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. Although 813’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time. In terms of its peers, Shimao Property Holdings has a yield of 3.85%, which is high for Real Estate stocks but still below the market’s top dividend payers.

Next Steps:

Considering the dividend attributes we analyzed above, Shimao Property Holdings is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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 pertinent factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for 813’s future growth? Take a look at our free research report of analyst consensus for 813’s outlook.

2. Valuation: What is 813 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 813 is currently mispriced by the market.

3. 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 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.