Yahoo Finance Only 3 Days Left To Cash In On Low Keng Huat (Singapore) Limited (SGX:F1E) Dividend, Should You Buy?
On the 21 June 2018, Low Keng Huat (Singapore) Limited (SGX:F1E) will be paying shareholders an upcoming dividend amount of SGD0.02 per share. However, investors must have bought the company’s stock before 08 June 2018 in order to qualify for the payment. That means you have only 3 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Low Keng Huat (Singapore)’s latest financial data to analyse its dividend characteristics. Check out our latest analysis for Low Keng Huat (Singapore)
How I analyze a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Does it pay an annual yield higher than 75% of dividend payers?
Has it paid dividend every year without dramatically reducing payout in the past?
Has dividend per share risen in the past couple of years?
Is its earnings sufficient to payout dividend at the current rate?
Will it be able to continue to payout at the current rate in the future?
How does Low Keng Huat (Singapore) fare?
The current trailing twelve-month payout ratio for the stock is 79.66%, 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 dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time. Compared to its peers, Low Keng Huat (Singapore) produces a yield of 3.01%, which is high for Construction stocks but still below the market’s top dividend payers.
Next Steps:
Taking all the above into account, Low Keng Huat (Singapore) is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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 key factors you should further examine:
Historical Performance: What has F1E’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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Low Keng Huat (Singapore)’s board and the CEO’s back ground.
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.
