FSE Lifestyle Services Limited (HKG:331) is set to pay investors HK$0.214 per share on December 16th, resulting in a dividend yield of 7.6%, surpassing industry averages. Despite a lack of consistency in past dividends, the company’s earnings easily cover the payments, with a forecasted 26.1% increase in EPS over the next year. While the dividend has grown rapidly in recent years, potential cuts in the past raise concerns about its reliability in the future.
However, FSE Lifestyle Services has seen a steady rise in EPS over the last five years at 9.9% annually, indicating potential for dividend growth. The company’s strong earnings and cash flow suggest sustainability in dividend payments, making it an attractive income stock for investors. While consistency in dividend policy is usually preferred, other factors should also be considered when analyzing a company, such as the warning sign identified for FSE Lifestyle Services.
Investors seeking high-yielding dividend ideas can explore the AI Stock Screener tool from Simply Wall St for opportunities in dividend powerhouses, undervalued small caps with insider buying, and high-growth tech and AI companies. Overall, FSE Lifestyle Services’ upcoming dividend payment, sustainable earnings coverage, and positive growth prospects make it a promising choice for income-seeking investors.
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