A Detailed Look at SHWGY's Dividend History, Yield, and Growth
Shandong Weigao Group Medical Polymer Co Ltd(SHWGY, Financial) recently announced a dividend of $0.04 per share, payable on 2023-12-08, with the ex-dividend date set for 2023-10-26. 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 delve into Shandong Weigao Group Medical Polymer Co Ltd's dividend performance and assess its sustainability.
What Does Shandong Weigao Group Medical Polymer Co Ltd Do?
Shandong Weigao Group Medical Polymer Co Ltd operates in the healthcare sector in China. Its business primarily involves the research and development, production, and sale of single-use medical device products. The company's segments include Medical device products, Orthopaedic products, Interventional products, Pharma packaging products, Blood management products, and others. The company's products comprise consumables including infusion sets, syringes, medical needles, blood bags, prefilled syringes, wound management, and blood sampling products; orthopedic materials, and blood purification consumables and equipment. The company operates in the People's Republic of China, the United States, Europe, the Middle East, and Africa, Asia, and others.
A Glimpse at Shandong Weigao Group Medical Polymer Co Ltd's Dividend History
Shandong Weigao Group Medical Polymer Co Ltd has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annually basis.
Shandong Weigao Group Medical Polymer Co Ltd has increased its dividend each year since 2013. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 10 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Shandong Weigao Group Medical Polymer Co Ltd's Dividend Yield and Growth
As of today, Shandong Weigao Group Medical Polymer Co Ltd currently has a 12-month trailing dividend yield of 2.74% and a 12-month forward dividend yield of 2.48%. This suggests an expectation of decrease dividend payments over the next 12 months.
Shandong Weigao Group Medical Polymer Co Ltd's dividend yield of 2.74% is near a 10-year high and outperforms than 63.73 of global competitors in the Medical Devices & Instruments industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Shandong Weigao Group Medical Polymer Co Ltd's annual dividend growth rate was 11.10%. Extended to a five-year horizon, this rate increased to 12.00% per year. And over the past decade, Shandong Weigao Group Medical Polymer Co Ltd's annual dividends per share growth rate stands at 9.30%.
Based on Shandong Weigao Group Medical Polymer Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Shandong Weigao Group Medical Polymer Co Ltd stock as of today is approximately 4.83%.
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, Shandong Weigao Group Medical Polymer Co Ltd's dividend payout ratio is 0.31.
Shandong Weigao Group Medical Polymer Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Shandong Weigao Group Medical Polymer Co Ltd's profitability 9 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. Shandong Weigao Group Medical Polymer Co Ltd's growth rank of 9 out of 10 suggests that the company 's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Shandong Weigao Group Medical Polymer Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Shandong Weigao Group Medical Polymer Co Ltd's revenue has increased by approximately 9.20% per year on average, a rate that outperforms than approximately 55.23% 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, Shandong Weigao Group Medical Polymer Co Ltd's earnings increased by approximately 13.70% per year on average, a rate that outperforms than approximately 54.14% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 15.90%, which outperforms than approximately 56.4% of global competitors.
Next Steps
In conclusion, Shandong Weigao Group Medical Polymer Co Ltd's consistent dividend payments, impressive dividend growth rate, sustainable payout ratio, high profitability, and robust growth metrics make it an attractive proposition for income investors. However, investors should also consider the company's future prospects and the overall health of the industry in their decision-making process. 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.
