Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. In the past 10 years CCID Consulting Company Limited (HKG:8235) has returned an average of 2.00% per year to investors in the form of dividend payouts. Let’s dig deeper into whether CCID Consulting should have a place in your portfolio. Check out our latest analysis for CCID Consulting
5 questions to ask before buying a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is their annual yield among the top 25% of dividend payers?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has dividend per share amount increased 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 does CCID Consulting fare?
The current trailing twelve-month payout ratio for the stock is 46.95%, 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 there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Although 8235’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time.In terms of its peers, CCID Consulting has a yield of 7.37%, which is high for IT stocks.
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, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three pertinent factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for 8235’s future growth? Take a look at our free research report of analyst consensus for 8235’s outlook.
- 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.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.