China Electronics Optics Valley Union Holding Company Limited (HGK:798): Dividend Is Coming In 8 Days, Should You Buy?

Important news for shareholders and potential investors in China Electronics Optics Valley Union Holding Company Limited (HGK:798): The dividend payment of CN¥0.020 per share will be distributed into shareholder on 04 July 2018, and the stock will begin trading ex-dividend at an earlier date, 19 June 2018. 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 China Electronics Optics Valley Union Holding's most recent financial data to examine its dividend characteristics in more detail. View out our latest analysis for China Electronics Optics Valley Union Holding

5 checks you should do on a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

• 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 it increased its dividend per share amount over the past?
• Is is able to pay the current rate of dividends from its earnings?
• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

How well does China Electronics Optics Valley Union Holding fit our criteria?

China Electronics Optics Valley Union Holding has a trailing twelve-month payout ratio of 29.09%, 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. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. The reality is that it is too early to consider China Electronics Optics Valley Union Holding as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, China Electronics Optics Valley Union Holding generates a yield of 3.05%, which is on the low-side for Real Estate stocks.

Next Steps:

After digging a little deeper into China Electronics Optics Valley Union Holding's yield, it's easy to see why you should be cautious investing in the company just for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering 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. There are three important aspects you should further research:

1. Valuation: What is 798 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 798 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 China Electronics Optics Valley Union Holding’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.

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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.