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Is Wing Tai Holdings Limited (SGX:W05) A Smart Pick For Income Investors?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. Over the past 10 years, Wing Tai Holdings Limited (SGX:W05) has returned an average of 3.00% per year to shareholders in terms of dividend yield. Does Wing Tai Holdings tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. Check out our latest analysis for Wing Tai Holdings

How I analyze a dividend stock

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

  • 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 the amount of dividend per share grown over the past?

  • Does earnings amply cover its dividend payments?

  • Will the company be able to keep paying dividend based on the future earnings growth?

SGX:W05 Historical Dividend Yield Jun 13th 18
SGX:W05 Historical Dividend Yield Jun 13th 18

How well does Wing Tai Holdings fit our criteria?

Wing Tai Holdings has a trailing twelve-month payout ratio of 24.51%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a higher payout ratio of 78.44%, leading to a dividend yield of around 3.17%. However, EPS is forecasted to fall to SGD0.06 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Although W05’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, Wing Tai Holdings generates a yield of 2.96%, which is high for Real Estate stocks but still below the market’s top dividend payers.

Next Steps:

Taking into account the dividend metrics, Wing Tai Holdings ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three essential aspects you should look at:

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  1. Future Outlook: What are well-informed industry analysts predicting for W05’s future growth? Take a look at our free research report of analyst consensus for W05’s outlook.

  2. Valuation: What is W05 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 W05 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.