Should I buy Hong Kong Finance Group Limited (HKG:1273) for upcoming dividends?

readers who wish to purchase Hong Kong Financial Group Limited (HKG:1273) Stocks are about to trade ex-dividend, so dividends need to move quickly. The ex-dividend date is generally set one business day prior to the record date. The record date is the closing date by which you must be on the books of the company as a shareholder to receive dividends. It is important to pay attention to the ex-dividend date, as stock trades must be settled on or before the record date. In other words, investors can buy Hong Kong Financial Group shares by December 30th to qualify for dividends to be paid out on January 17th.

The company’s upcoming dividend will be HK$0.013 per share, following a 12-month period in which a total of HK$0.026 per share was distributed to shareholders. Based on last year’s payouts, Hong Kong Financial Group shares have a trailing yield of around 7.5% against the current share price of HK$0.345. I love seeing companies pay dividends, but it’s also important to make sure that laying golden eggs doesn’t kill the golden goose! You need to check if you are

See the latest analysis from Hong Kong Financial Group

Dividends are usually paid out of the company’s income, so if the company pays more than it earns, the dividend is usually at greater risk of being cut. The Hong Kong financial group has a low and conservative dividend payout ratio of just 17% of after-tax profits.

When a company pays less dividend than it earns, this usually suggests that the dividend is affordable. The lower the percentage of profit you pay out, the greater the margin of safety for your dividend if your business hits a recession.

Click here to see the profits paid by Hong Kong Financial Group in the last 12 months.

Are profits and dividends growing?

Companies with consistently increasing earnings per share are generally the best dividend stocks because they usually find it easier to increase their dividends per share. If earnings drop significantly, the company could be forced to cut its dividend. That’s why he’s relieved to see that Hong Kong Financial Group’s earnings per share have increased by 6.0% annually over the past five years.

The primary way most investors assess a company’s dividend outlook is by checking historical dividend growth. His dividend per share for Hong Kong Financial Group has declined by an average of 0.9% annually over the past eight years, which is not attractive.

Conclusion

Has Hong Kong Financial Group got what it needs to sustain its dividend payout? Hong Kong Financial Group’s earnings per share have grown slowly in recent years, and the company has reinvested more than half of its earnings back into its business. , which generally bodes well for the future. In summary, Hong Kong Finance Group looks promising as a dividend stock.

So while Hong Kong Finance Group looks good from a dividend standpoint, it’s worth keeping up to date with the risks associated with this stock. Regarding investment risk, Identified two warning signs Understanding them should be part of the investment process.

If you are in a market of strong dividend payers, we recommend Check out our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative materials. Is not …