2 Days Left Before Langham Hospitality Investments Limited (HKG:1270) Will Start Trading Ex-Dividend, Should Investors Buy?
Investors who want to cash in on Langham Hospitality Investments Limited’s (HKG:1270) upcoming dividend of HK$0.09 per share have only 2 days left to buy the shares before its ex-dividend date, 06 September 2018, in time for dividends payable on the 28 September 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Langham Hospitality Investments’s latest financial data to analyse its dividend characteristics.
See our latest analysis for Langham Hospitality Investments
5 checks you should use to assess a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is its annual yield among the top 25% of dividend-paying companies?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has the amount of dividend per share grown over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will the company be able to keep paying dividend based on the future earnings growth?
Does Langham Hospitality Investments pass our checks?
The current trailing twelve-month payout ratio for the stock is 29.4%, 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. The reality is that it is too early to consider Langham Hospitality Investments as a dividend investment. It has only been consistently paying dividends for 5 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.
In terms of its peers, Langham Hospitality Investments has a yield of 6.8%, which is high for Real Estate stocks.
Next Steps:
Whilst there are few things you may like about Langham Hospitality Investments 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, 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. I’ve put together three fundamental factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 1270’s future growth? Take a look at our free research report of analyst consensus for 1270’s outlook.
Valuation: What is 1270 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 1270 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.
