Exploring the Dividend Performance and Sustainability of Kerry Logistics Network Ltd (KRRYF, Financial)
Kerry Logistics Network Ltd (KRRYF) recently announced a dividend of $0.13 per share, payable on 2024-06-06, with the ex-dividend date set for 2024-05-24. 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 look into Kerry Logistics Network Ltd's dividend performance and assess its sustainability.
What Does Kerry Logistics Network Ltd Do?
Kerry Logistics Network, or KLN, is a leading Asian diversified logistics service provider with a global presence. KLN is the number one non-vessel operating common carrier, or NVOCC, by volume for transpacific trades in 2022. Its business consists of international freight forwarding (air freight, ocean freight, and cross-border road freight forwarding services), integrated logistics mainly across Asia, and e-commerce and express delivery services. KLN has been majority owned by and consolidated under the international segment of China's leading logistics company S.F. Holding, or SF, since September 2021.
A Glimpse at Kerry Logistics Network Ltd's Dividend History
Kerry Logistics Network Ltd has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kerry Logistics Network Ltd's Dividend Yield and Growth
As of today, Kerry Logistics Network Ltd currently has a 12-month trailing dividend yield of 3.30% and a 12-month forward dividend yield of 1.55%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Kerry Logistics Network Ltd's annual dividend growth rate was 17.50%. Extended to a five-year horizon, this rate increased to 23.60% per year. Based on Kerry Logistics Network Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Kerry Logistics Network Ltd stock as of today is approximately 9.52%.
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 2023-12-31, Kerry Logistics Network Ltd's dividend payout ratio is 0.72, which may suggest that the company's dividend may not be sustainable. Kerry Logistics Network Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kerry Logistics Network Ltd's profitability 8 out of 10 as of 2023-12-31, 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. Kerry Logistics Network 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 Kerry Logistics Network Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kerry Logistics Network Ltd's revenue has increased by approximately -2.50% per year on average, a rate that underperforms than approximately 79% 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, Kerry Logistics Network Ltd's earnings increased by approximately 4.60% per year on average, a rate that underperforms than approximately 61.6% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -2.30%, which underperforms than approximately 75.88% of global competitors.
Conclusion: Evaluating Dividend Sustainability
Considering Kerry Logistics Network Ltd's consistent dividend history, robust dividend growth rates, and a strong profitability rank, the company presents an appealing case for dividend investors. However, the sustainability of future dividends is contingent on improvements in revenue and earnings growth metrics, which currently show signs of underperformance. For investors seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium provides tools like the High Dividend Yield Screener to discover promising opportunities.
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.
