AEON Credit Service (Asia) Company Limited (HKG:900): What You Have To Know Before Buying For The Upcoming Dividend

Have you been keeping an eye on AEON Credit Service (Asia) Company Limited's (HKG:900) upcoming dividend of HK$0.22 per share payable on the 13 July 2018? Then you only have 1 days left before the stock starts trading ex-dividend on the 25 June 2018. Is this future income a persuasive enough catalyst for investors to think about AEON Credit Service (Asia) as an investment today? Below, 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 AEON Credit Service (Asia)

Here's how I find good dividend stocks

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?
• Does it consistently pay out dividends without missing a payment of significantly cutting payout?
• Has dividend per share amount increased 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 AEON Credit Service (Asia) pass our checks?

The company currently pays out 47.39% of its earnings as a dividend, according to its trailing twelve-month data, 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. 900 has increased its DPS from HK$0.25 to HK$0.44 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.

Relative to peers, AEON Credit Service (Asia) has a yield of 6.67%, which is high for Consumer Finance stocks.

Next Steps:

Considering the dividend attributes we analyzed above, AEON Credit Service (Asia) is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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. Below, I've compiled three important aspects you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for 900’s future growth? Take a look at our free research report of analyst consensus for 900’s outlook.
2. Historical Performance: What has 900's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.