On the 09 August 2018, CCID Consulting Company Limited (HGK:8235) will be paying shareholders an upcoming dividend amount of CN¥0.014 per share. However, investors must have bought the company’s stock before 19 June 2018 in order to qualify for the payment. That means you have only 8 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into CCID Consulting’s latest financial data to analyse its dividend attributes. View out our latest analysis for CCID Consulting
How I analyze a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
- Is its annual yield among the top 25% of dividend-paying companies?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has dividend per share risen in the past couple of years?
- Is is able to pay the current rate of dividends from its earnings?
- Will it have the ability to keep paying its dividends going forward?
How well does CCID Consulting fit our criteria?
The company currently pays out 46.95% 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. 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. 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. Relative to peers, CCID Consulting generates a yield of 6.59%, which is high for IT stocks.Next Steps:
With this in mind, I definitely rank CCID Consulting as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their 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. There are three relevant factors you should look at:
- Valuation: What is 8235 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 8235 is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CCID Consulting’s board and the CEO’s back ground.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.