Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Associated International Hotels Limited (HKG:105) is about to go ex-dividend in just four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase Associated International Hotels' shares on or after the 14th of September, you won't be eligible to receive the dividend, when it is paid on the 6th of October.
The company's upcoming dividend is HK$0.21 a share, following on from the last 12 months, when the company distributed a total of HK$0.40 per share to shareholders. Calculating the last year's worth of payments shows that Associated International Hotels has a trailing yield of 3.3% on the current share price of HK$12. If you buy this business for its dividend, you should have an idea of whether Associated International Hotels's dividend is reliable and sustainable. As a result, readers should always check whether Associated International Hotels has been able to grow its dividends, or if the dividend might be cut.
Check out our latest analysis for Associated International Hotels
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Associated International Hotels paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run. Considering the lack of profitability, we also need to check if the company generated enough cash flow to cover the dividend payment. If cash earnings don't cover the dividend, the company would have to pay dividends out of cash in the bank, or by borrowing money, neither of which is long-term sustainable. Dividends consumed 73% of the company's free cash flow last year, which is within a normal range for most dividend-paying organisations.
Click here to see how much of its profit Associated International Hotels paid out over the last 12 months.
SEHK:105 Historic Dividend September 9th 2022
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. If earnings fall far enough, the company could be forced to cut its dividend. Associated International Hotels reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Associated International Hotels has seen its dividend decline 3.3% per annum on average over the past 10 years, which is not great to see. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it.
Get our latest analysis on Associated International Hotels's balance sheet health here.
Final Takeaway
Is Associated International Hotels worth buying for its dividend? We're a bit uncomfortable with it paying a dividend while being loss-making. However, we note that the dividend was covered by cash flow. It's not that we think Associated International Hotels is a bad company, but these characteristics don't generally lead to outstanding dividend performance.
With that being said, if you're still considering Associated International Hotels as an investment, you'll find it beneficial to know what risks this stock is facing. Every company has risks, and we've spotted 2 warning signs for Associated International Hotels (of which 1 is concerning!) you should know about.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
一些投资者依靠股息来增加他们的财富,如果你是股息侦探中的一员,你可能会感兴趣地知道联营国际酒店有限公司(HKG:105)即将在短短四天内除息。除息日期发生在记录日期的前一天,也就是股东需要登记在公司账面上才能获得股息的日期。除息日期很重要,因为股票的任何交易都需要在记录日期之前结算,才有资格获得股息。因此,如果您在9月14日或之后购买联合国际酒店的股票,当10月6日支付股息时,您将没有资格获得股息。
该公司即将派发的股息为每股0.21港元,此前该公司在过去12个月向股东共派发了每股0.40港元的股息。计算过去一年的支付价值显示,联合国际酒店目前12港元的股价,往绩收益率为3.3%,如果你购买这项业务是为了它的股息,你应该对联合国际酒店的股息是否可靠和可持续有所了解。因此,读者应该始终查看联合国际酒店是否能够增加股息,或者股息是否可能被削减。
查看我们对联合国际酒店的最新分析
股息通常从公司利润中支付,因此,如果一家公司支付的股息超过了它的收入,那么它的股息通常被削减的风险更大。尽管联营国际酒店集团没有盈利,但去年还是派发了股息。这可能是一次性事件,但从长远来看,这不是一种可持续的状态。考虑到缺乏盈利能力,我们还需要检查公司是否产生了足够的现金流来支付股息。如果现金收益不足以支付股息,该公司将不得不用银行现金支付股息,或者通过借款支付股息,这两种方式都不是长期可持续的。去年,股息消耗了公司73%的自由现金流,对于大多数支付股息的组织来说,这在正常范围内。
单击此处查看联合国际酒店在过去12个月中支付了多少利润。
联交所:105历史性红利2022年9月9日
盈利和股息一直在增长吗?
从分红的角度来看,收益缩水的企业很棘手。如果收益降幅足够大,该公司可能会被迫削减股息。联合国际酒店去年报告亏损,大趋势表明其收益近年来也在下降,这让我们怀疑股息是否存在风险。
大多数投资者评估一家公司的股息前景的主要方式是检查历史上的股息增长率。在过去的10年里,联合国际酒店的股息平均每年下降3.3%,这并不是很好的情况。看到收益和股息下降从来都不是好事,但至少管理层削减了股息,而不是为了维持股息而潜在地冒着公司健康的风险。
点击此处获取我们对联合国际酒店资产负债表健康状况的最新分析。
最终外卖
为了分红,联合国际酒店值得收购吗?我们对它在亏损的同时支付股息感到有点不舒服。然而,我们注意到股息是由现金流支付的。这并不是说我们认为联合国际酒店是一家糟糕的公司,但这些特点通常不会带来出色的股息表现。
话虽如此,如果你仍在考虑投资联合国际酒店,你会发现了解这只股票面临的风险是有益的。每家公司都有风险,我们已经发现2个联营国际酒店的警示标志(其中1个是有关的!)你应该知道。
一般来说,我们不会建议只购买你看到的第一批股息股票。这是这是一份精心挑选的股息支付强劲的有趣股票的名单。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。