Delving Into Sino Land Co Ltd's Dividend Profile
Sino Land Co Ltd(SNLAY, Financial) recently announced a dividend of $0.1 per share, payable on 2024-04-29, with the ex-dividend date set for 2024-03-06. 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 Sino Land Co Ltd's dividend performance and assess its sustainability.
What Does Sino Land Co Ltd Do?
Sino Land Co Ltd is a property developer mainly engaged in residential development in Hong Kong. It also holds a portfolio of investment properties in the city, mostly commercial properties adjoining the housing projects it built in the past. Many of its residential projects were developed in joint ventures with government-related entities such as MTR and Urban Renewal Authority. Rental income and property development account for the majority of the earnings, mainly derived from Hong Kong. Hotel and other segments account for the remaining of the earnings. The company is 55% owned by Tsim Sha Tsui Properties, an entity controlled by the estate of the late Mr. Ng Teng Fong, the company's founder.
A Glimpse at Sino Land Co Ltd's Dividend History
Sino Land Co Ltd has maintained a consistent dividend payment record since 2006. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Sino Land Co Ltd's Dividend Yield and Growth
As of today, Sino Land Co Ltd currently has a 12-month trailing dividend yield of 6.74% and a 12-month forward dividend yield of 6.75%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Sino Land Co Ltd's annual dividend growth rate was 1.20%. Extended to a five-year horizon, this rate increased to 1.40% per year. And over the past decade, Sino Land Co Ltd's annual dividends per share growth rate stands at 1.70%.
Based on Sino Land Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Sino Land Co Ltd stock as of today is approximately 7.23%.
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 2023-06-30, Sino Land Co Ltd's dividend payout ratio is 0.80, which may suggest that the company's dividend may not be sustainable.
Sino Land Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Sino Land Co 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.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Sino Land Co 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 Sino Land Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Sino Land Co Ltd's revenue has increased by approximately 20.70% per year on average, a rate that outperforms approximately 78.96% 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, Sino Land Co Ltd's earnings increased by approximately 45.40% per year on average, a rate that outperforms approximately 87.45% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -4.70%, which outperforms approximately 33.53% of global competitors.
Next Steps
In conclusion, Sino Land Co Ltd's dividend payments and growth rate are noteworthy for investors seeking income. However, the payout ratio raises questions about long-term sustainability, which is somewhat mitigated by the company's strong profitability and growth metrics. Investors should weigh these factors when considering Sino Land Co Ltd as part of their dividend portfolio. As the company navigates the dynamic real estate market, will its strategic initiatives and financial discipline continue to support its attractive dividend profile? For those seeking to explore further, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
