Exploring the Dividend History, Yield, and Sustainability of Great Eagle Holdings Ltd (GEAHF, Financial)
Great Eagle Holdings Ltd (GEAHF) recently announced a dividend of $0.37 per share, payable on 2023-10-13, 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 Great Eagle Holdings Ltd's dividend performance and assess its sustainability.
Understanding Great Eagle Holdings Ltd
Great Eagle Holdings Ltd is an investment holding company. The group along with its subsidiaries is engaged in property development and investment, operations of hotels, restaurants and flexible workspaces, asset management, project management, trading of building materials, securities investment, provision of property management, maintenance and property agency services and property leasing. The company generates a majority of its revenue from Hong Kong.
Tracing Great Eagle Holdings Ltd's Dividend History
Great Eagle Holdings Ltd has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Dissecting Great Eagle Holdings Ltd's Dividend Yield and Growth
As of today, Great Eagle Holdings Ltd currently has a 12-month trailing dividend yield of 6.01% and a 12-month forward dividend yield of 6.31%. This suggests an expectation of increased dividend payments over the next 12 months.
Great Eagle Holdings Ltd's dividend yield of 6.01% is near a 10-year high and outperforms 77.44% of global competitors in the Real Estate industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Extended to a five-year horizon, this rate increased to 1.10% per year. And over the past decade, Great Eagle Holdings Ltd's annual dividends per share growth rate stands at 2.90%. Based on Great Eagle Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Great Eagle Holdings Ltd stock as of today is approximately 6.35%.
Assessing Dividend Sustainability: 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, Great Eagle Holdings Ltd's dividend payout ratio is 3.77, suggesting that the company's dividend may not be sustainable.
Great Eagle Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Great Eagle Holdings Ltd's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 6 years out of the past 10 years.
Peering into Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Great Eagle Holdings Ltd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Great Eagle Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Great Eagle Holdings Ltd's revenue has increased by approximately -2.70% per year on average, a rate that underperforms approximately 61.98% 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, Great Eagle Holdings Ltd's earnings increased by approximately 19.50% per year on average, a rate that underperforms approximately 28.11% of global competitors.
Conclusion
While Great Eagle Holdings Ltd has shown consistency in dividend payments and an attractive yield, the sustainability of its dividends is a concern due to a high payout ratio. The company's growth metrics and profitability rank also suggest a fair outlook, but its underperformance in revenue and EPS growth compared to global competitors might pose challenges. Therefore, investors should consider these factors carefully before making investment decisions.
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