Bosideng International Holdings Ltd's Dividend Analysis

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Delving into Bosideng International Holdings Ltd's Dividend Prospects

Bosideng International Holdings Ltd (BSDGY, Financial) recently announced a dividend of $0.32 per share, payable on 2024-01-26, with the ex-dividend date set for 2023-12-15. 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 look into Bosideng International Holdings Ltd's dividend performance and assess its sustainability.

What Does Bosideng International Holdings Ltd Do?

Bosideng International Holdings Ltd is an integrated clothing group in China. It mainly engaged in design, manufacture and sales of down apparel products including research, raw materials procurement, outsourced manufacturing, marketing and distribution of branded down apparel products, original equipment manufacturing products and non-down apparel products. The group operates its business in four segments namely Down apparels, OEM management, Ladieswear apparels, and Diversified apparels. It generates a majority of revenue from the Down apparels segment which carries on the business of sourcing and distributing branded down apparels. The group's down apparel brands include Bosideng, Snow Flying, and Bengen, among others.

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A Glimpse at Bosideng International Holdings Ltd's Dividend History

Bosideng International Holdings Ltd has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down Bosideng International Holdings Ltd's Dividend Yield and Growth

As of today, Bosideng International Holdings Ltd currently has a 12-month trailing dividend yield of 5.50% and a 12-month forward dividend yield of 5.65%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Bosideng International Holdings Ltd's annual dividend growth rate was 26.20%. Extended to a five-year horizon, this rate increased to 48.30% per year. And over the past decade, Bosideng International Holdings Ltd's annual dividends per share growth rate stands at 9.20%.

Based on Bosideng International Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Bosideng International Holdings Ltd stock as of today is approximately 39.45%.

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The Sustainability Question: Payout Ratio and Profitability

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 2023-09-30, Bosideng International Holdings Ltd's dividend payout ratio is 0.79, which may suggest that the company's dividend may not be sustainable.

Bosideng International Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bosideng International Holdings Ltd's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. Bosideng International Holdings Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Bosideng International Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bosideng International Holdings Ltd's revenue has increased by approximately 10.50% per year on average, a rate that outperforms approximately 72.12% 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, Bosideng International Holdings Ltd's earnings increased by approximately 20.10% per year on average, a rate that outperforms approximately 61.23% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 25.70%, which outperforms approximately 77.55% of global competitors.

Investing in Dividend Growth

In conclusion, Bosideng International Holdings Ltd's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics collectively paint a picture of a company that is committed to rewarding its shareholders with consistent and potentially growing dividends. While the payout ratio warrants monitoring, the company's strong profitability and growth metrics provide a reassuring backdrop for the sustainability of its dividends. Investors seeking dividend income with the potential for growth may find Bosideng International Holdings Ltd an attractive option to consider. Will Bosideng International Holdings Ltd continue to deliver dividend growth in line with its historical performance? Only time will tell, but the indicators seem promising.

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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.