An in-depth analysis of Keck Seng Investments (Hong Kong) Ltd's dividend performance and sustainability
Keck Seng Investments (Hong Kong) Ltd(KCKSF, Financial) recently announced a dividend of $0.03 per share, payable on 2023-10-26, with the ex-dividend date set for 2023-10-04. 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 Keck Seng Investments (Hong Kong) Ltd's dividend performance and assess its sustainability.
Company Overview: Keck Seng Investments (Hong Kong) Ltd
Keck Seng Investments (Hong Kong) Ltd is an investment holding company engaged in hotel and club operations, property investment and development, and the provision of management services. It has three operating segments: Hotel segment; Property segment and Investment and corporate segment. Majority of the revenue is derived from the Hotel segment that is engaged in the businesses of hotel room accommodation, provision of food and beverage at hotel restaurant outlets, and operation of slot machines at one of the Group's hotels.
Keck Seng Investments (Hong Kong) Ltd's Dividend History
Keck Seng Investments (Hong Kong) Ltd has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Keck Seng Investments (Hong Kong) Ltd's Dividend Yield and Growth
As of today, Keck Seng Investments (Hong Kong) Ltd currently has a 12-month trailing dividend yield of 2.40% and a 12-month forward dividend yield of 3.84%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Keck Seng Investments (Hong Kong) Ltd's annual dividend growth rate was -36.30%. Based on Keck Seng Investments (Hong Kong) Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Keck Seng Investments (Hong Kong) Ltd stock as of today is approximately 2.40%.
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, Keck Seng Investments (Hong Kong) Ltd's dividend payout ratio is 0.15.
Keck Seng Investments (Hong Kong) Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Keck Seng Investments (Hong Kong) Ltd's profitability 6 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 8 years out of the past 10 years.
Keck Seng Investments (Hong Kong) Ltd's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Keck Seng Investments (Hong Kong) Ltd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. 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, Keck Seng Investments (Hong Kong) Ltd's earnings increased by approximately 141.00% per year on average, a rate that underperforms than approximately 2.76% of global competitors.
Conclusion
Based on the analysis of Keck Seng Investments (Hong Kong) Ltd's dividend payments, growth rate, payout ratio, profitability, and growth metrics, the company exhibits a fair potential for sustaining dividends in the long run. However, investors should keep an eye on the company's growth metrics and profitability rank for further insights into its dividend sustainability. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
