Unraveling the Dividend History, Yield, and Growth of Beijing Enterprises Holdings Ltd (BJINF, Financial)
Beijing Enterprises Holdings Ltd(BJINF) recently announced a dividend of $0.93 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-09-22. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Beijing Enterprises Holdings Ltd's dividend performance and assess its sustainability.
Understanding Beijing Enterprises Holdings Ltd
Beijing Enterprises Holdings was founded in 1997 and it is the listed flagship of the Beijing municipal government. It has a diversified business portfolio with focus on public utilities, including gas distribution and transmission, sewage and water treatment, and waste-to-energy business. It also invests in an upstream Russia oil and gas company, and owns 80% of Yanjing Brewery, one of the leading domestic brewers. The business mix is approximately 70% in gas operation, with the rest in water, waste treatment, and beer businesses.
Tracing Beijing Enterprises Holdings Ltd's Dividend History
Beijing Enterprises Holdings Ltd has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dissecting Beijing Enterprises Holdings Ltd's Dividend Yield and Growth
As of today, Beijing Enterprises Holdings Ltd currently has a 12-month trailing dividend yield of 5.55% and a 12-month forward dividend yield of 7.04%. This suggests an expectation of increased dividend payments over the next 12 months.
Beijing Enterprises Holdings Ltd's dividend yield of 5.55% is near a 10-year high and outperforms than 83.43 of global competitors in the Conglomerates industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Beijing Enterprises Holdings Ltd's annual dividend growth rate was 6.10%. Extended to a five-year horizon, this rate increased to 6.40% per year. And over the past decade, Beijing Enterprises Holdings Ltd's annual dividends per share growth rate stands at 5.80%.
Based on Beijing Enterprises Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Beijing Enterprises Holdings Ltd stock as of today is approximately 7.57%.
Is Beijing Enterprises Holdings Ltd's Dividend Sustainable?
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Beijing Enterprises Holdings Ltd's dividend payout ratio is 0.43.
Beijing Enterprises Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Beijing Enterprises Holdings Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Future Prospects: Analyzing Beijing Enterprises Holdings Ltd's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Beijing Enterprises Holdings Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Beijing Enterprises Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Beijing Enterprises Holdings Ltd's revenue has increased by approximately 10.90% per year on average, a rate that outperforms than approximately 66.74% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Beijing Enterprises Holdings Ltd's earnings increased by approximately -2.00% per year on average, a rate that outperforms than approximately 27.95% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 2.50%, which outperforms than approximately 35.59% of global competitors.
Conclusion
In conclusion, Beijing Enterprises Holdings Ltd's consistent dividend payments, impressive growth rate, reasonable payout ratio, high profitability, and solid growth metrics all point towards a sustainable dividend. This suggests that the company is well-positioned to continue providing attractive returns for income investors. However, as always, investors are advised to do their due diligence and consider the overall financial health of the company before making investment decisions.
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