Income Investors Should Know The The Cross-Harbour (Holdings) Limited (HKG:32) Ex-Dividend Date
Investors who want to cash in on The Cross-Harbour (Holdings) Limited's (HKG:32) upcoming dividend of HK$0.22 per share have only 3 days left to buy the shares before its ex-dividend date, 22 May 2019, in time for dividends payable on the 06 June 2019. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let's take a look at Cross-Harbour (Holdings)'s most recent financial data to examine its dividend characteristics in more detail.
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Check out our latest analysis for Cross-Harbour (Holdings)
5 questions I ask before picking a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Does it pay an annual yield higher than 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share amount increased over the past?
Does earnings amply cover its dividend payments?
Will it have the ability to keep paying its dividends going forward?
How does Cross-Harbour (Holdings) fare?
The company currently pays out 33% 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.
When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
If there's one type of stock you want to be reliable, it's dividend stocks and their stable income-generating ability. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again.
Compared to its peers, Cross-Harbour (Holdings) has a yield of 3.7%, which is high for Consumer Services stocks but still below the market's top dividend payers.
Next Steps:
Whilst there are few things you may like about Cross-Harbour (Holdings) 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, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I've put together three essential aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 32’s future growth? Take a look at our free research report of analyst consensus for 32’s outlook.
Valuation: What is 32 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 32 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
