An In-Depth Look at the Upcoming Dividend and Historical Performance
China Feihe Ltd (CHFLF, Financial) recently announced a dividend of $0.15 per share, scheduled for payment on June 5, 2024, with the ex-dividend date set for May 24, 2024. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this article delves into the dividend performance of China Feihe Ltd and evaluates its sustainability.
What Does China Feihe Ltd Do?
China Feihe Ltd is a leading infant milk formula producer in China, known for its premium positioning among both domestic and international competitors. The company promotes its flagship Astrobaby products under the claim they are "more suitable for Chinese babies." It boasts a comprehensive distribution network that includes maternity stores, supermarkets, traditional retailers, and a robust e-commerce platform.
A Glimpse at China Feihe Ltd's Dividend History
Since 2020, China Feihe Ltd has maintained a consistent record of dividend payments, distributed bi-annually. The following chart illustrates the annual Dividends Per Share to help track historical trends.
Breaking Down China Feihe Ltd's Dividend Yield and Growth
China Feihe Ltd currently boasts a 12-month trailing dividend yield of 7.12% and a forward dividend yield of 6.88%, indicating an expected decrease in dividend payments over the next year. Over the past three years, the company's annual dividend growth rate was -4.20%. The 5-year yield on cost for China Feihe Ltd stock stands at approximately 7.12%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, it is essential to consider the company's payout ratio. The dividend payout ratio of 0.77 suggests that the company retains a significant portion of its earnings, which supports future growth and provides a buffer against downturns. Moreover, China Feihe Ltd's profitability rank of 8 out of 10 indicates strong earnings potential, having reported net profits in 8 of the past 10 years.
Growth Metrics: The Future Outlook
The sustainability of dividends also hinges on robust growth metrics. China Feihe Ltd's growth rank of 8 suggests a promising growth trajectory. However, its revenue per share and 3-year revenue growth rate indicate a slight underperformance in revenue growth, at -0.90% annually. Additionally, the company's 3-year EPS growth rate and 5-year EBITDA growth rate further underscore challenges in earnings growth, which are crucial for sustaining dividends.
Concluding Thoughts on China Feihe Ltd's Dividend Sustainability
While China Feihe Ltd has demonstrated a commitment to returning value to shareholders through dividends, the company faces challenges in revenue and earnings growth that could impact future dividend sustainability. Investors should closely monitor these growth metrics and the company's strategic initiatives to enhance profitability. For those looking to explore more high-dividend yield opportunities, GuruFocus Premium offers a comprehensive 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.
