2 Days Left To Cash In On JB Foods Limited (SGX:BEW) Dividend, Is It Worth Buying?

Isabel Galloway
Updated

Investors who want to cash in on JB Foods Limited’s (SGX:BEW) upcoming dividend of $0.02 per share have only 2 days left to buy the shares before its ex-dividend date, 24 January 2018, in time for dividends payable on the 01 March 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into JB Foods’s latest financial data to analyse its dividend attributes. Check out our latest analysis for JB Foods

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:

  • Is it paying an annual yield above 75% of dividend payers?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

  • Has dividend per share risen in the past couple of years?

  • Does earnings amply cover its dividend payments?

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

SGX:BEW Historical Dividend Yield Jan 21st 18
SGX:BEW Historical Dividend Yield Jan 21st 18

How well does JB Foods fit our criteria?

JB Foods has a payout ratio of 46.30%, 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. 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. The reality is that it is too early to consider JB Foods 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, JB Foods generates a yield of 3.54%, which is high for food stocks.

Next Steps:

Whilst there are few things you may like about JB Foods 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 key aspects you should look at:

1. Valuation: What is BEW 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 BEW is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on JB Foods’s board and the CEO’s back ground.

3. 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.