Should Kerry Properties Limited (HKG:683) Be Part Of Your Dividend Portfolio?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. Over the past 10 years, Kerry Properties Limited (HKG:683) has returned an average of 3.00% per year to shareholders in terms of dividend yield. Should it have a place in your portfolio? Let’s take a look at Kerry Properties in more detail. View out our latest analysis for Kerry Properties

5 checks you should do on a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

• Is their annual yield among the top 25% 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?

• Can it afford to pay the current rate of dividends from its earnings?

• Will it be able to continue to payout at the current rate in the future?

SEHK:683 Historical Dividend Yield June 21st 18

Does Kerry Properties pass our checks?

Kerry Properties has a trailing twelve-month payout ratio of 21.09%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 40.38%, leading to a dividend yield of around 3.70%. However, EPS is forecasted to fall to HK$4.02 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.

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. Although 683’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.

Compared to its peers, Kerry Properties has a yield of 3.23%, which is on the low-side for Real Estate stocks.

Next Steps:

Considering the dividend attributes we analyzed above, Kerry Properties 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. I’ve put together three key aspects you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for 683’s future growth? Take a look at our free research report of analyst consensus for 683’s outlook.

2. Valuation: What is 683 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 683 is currently mispriced by the market.

3. Other 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.