Assessing the company's dividend history, yield, growth rates, and the sustainability of its dividend payments
China Everbright Environment Group Ltd(CHFFF, Financial) recently announced a dividend of $0.14 per share, payable on 2023-10-20, with the ex-dividend date set for 2023-09-25. 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 China Everbright Environment Group Ltd's dividend performance and assess its sustainability.
What Does China Everbright Environment Group Ltd Do?
China Everbright Environment Group Ltd is engaged in construction, environmental energy project operation, Greentech project operation, environmental water project operation, the conduct of environmental protection technology research and development, provision of environmental-related technological services, design of environmental protection projects, provision of environmental protection project equipment construction and installation services and sales of related equipment, provision of waste sorting, renewable resources utilization, sanitation operation services, sales of energy-saving streetlights. Its segments are Environmental energy project construction and operation, Greentech project construction and operation, Environmental water project construction and operation, and Others.
A Glimpse at China Everbright Environment Group Ltd's Dividend History
China Everbright Environment Group 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.
Breaking Down China Everbright Environment Group Ltd's Dividend Yield and Growth
As of today, China Everbright Environment Group Ltd currently has a 12-month trailing dividend yield of 8.97% and a 12-month forward dividend yield of 10.46%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, China Everbright Environment Group Ltd's annual dividend growth rate was 6.30%. Extended to a five-year horizon, this rate increased to 6.70% per year. And over the past decade, China Everbright Environment Group Ltd's annual dividends per share growth rate stands at an impressive 20.10%.
Based on China Everbright Environment Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of China Everbright Environment Group Ltd stock as of today is approximately 12.41%.
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, China Everbright Environment Group Ltd's dividend payout ratio is 0.32.
China Everbright Environment Group Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks China Everbright Environment Group Ltd's profitability 8 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. China Everbright Environment Group 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 China Everbright Environment Group Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. China Everbright Environment Group Ltd's revenue has increased by approximately -0.20% per year on average, a rate that underperforms than approximately 68.02% 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, China Everbright Environment Group Ltd's earnings increased by approximately -4.00% per year on average, a rate that underperforms than approximately 72.5% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 2.40%, which underperforms than approximately 71.82% of global competitors.
Conclusion
In conclusion, China Everbright Environment Group Ltd's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics all point toward a company that has not only consistently rewarded its shareholders with dividends but also shown promising signs of being able to sustain these payments in the future. However, investors should continue to monitor these metrics closely to ensure that the company's growth and profitability remain robust.
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