Techtronic Industries Company Limited (HKG:669): Dividend Is Coming In 2 Days, Should You Buy?
Have you been keeping an eye on Techtronic Industries Company Limited’s (HKG:669) upcoming dividend of US$0.38 per share payable on the 21 September 2018? Then you only have 2 days left before the stock starts trading ex-dividend on the 04 September 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Techtronic Industries’s latest financial data to analyse its dividend attributes.
See our latest analysis for Techtronic Industries
5 questions to ask before buying a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
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?
Is its earnings sufficient to payout dividend at the current rate?
Will it be able to continue to payout at the current rate in the future?
Does Techtronic Industries pass our checks?
The company currently pays out 35.3% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 37.5%, leading to a dividend yield of 2.2%. In addition to this, EPS should increase to $0.34.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although 669’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again.
Relative to peers, Techtronic Industries has a yield of 1.6%, which is on the low-side for Consumer Durables stocks.
Next Steps:
Whilst there are few things you may like about Techtronic Industries 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 recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three fundamental factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 669’s future growth? Take a look at our free research report of analyst consensus for 669’s outlook.
Valuation: What is 669 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 669 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.
