An In-depth Look at Upcoming Dividends and Historical Performance
Power Assets Holdings Ltd (HGKGF, Financial) recently announced a dividend of $2.04 per share, payable on June 11, 2024, with the ex-dividend date set for May 28, 2024. 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 Power Assets Holdings Ltd's dividend performance and assess its sustainability.
What Does Power Assets Holdings Ltd Do?
Power Assets Holdings is an investment holding company with a focus on regulated utility assets. The firm owns a portfolio of regulated electricity and gas assets and similarly stable utilities in Hong Kong, the UK, Australia, Canada, Europe, and New Zealand. Profits from its regulated assets make up around 80% of total income, with contributions from its UK and Australian assets totaling more than 60% of group profit. The firm is part of CK Hutchison Holdings, a Hong Kong-based multinational conglomerate, and is currently 36% owned by CK Infrastructure Holdings.
A Glimpse at Power Assets Holdings Ltd's Dividend History
Power Assets Holdings Ltd has maintained a consistent dividend payment record since 2006, with dividends currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Power Assets Holdings Ltd's Dividend Yield and Growth
As of today, Power Assets Holdings Ltd currently has a 12-month trailing dividend yield of 5.91% and a 12-month forward dividend yield of 5.93%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Power Assets Holdings Ltd's annual dividend growth rate was 0.20%, which remained the same over a five-year horizon. Over the past decade, the annual dividends per share growth rate stands at 1.10%.
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. As of December 31, 2023, Power Assets Holdings Ltd's dividend payout ratio is 1.00, which may suggest that the company's dividend may not be sustainable. However, Power Assets Holdings Ltd's profitability rank of 7 out of 10, combined with consistent positive net income over the past decade, suggests good profitability prospects.
Growth Metrics: The Future Outlook
Ensuring the sustainability of dividends requires robust growth metrics. Power Assets Holdings Ltd's growth rank of 7 suggests good growth potential relative to its competitors. However, its revenue and earnings growth rates underperform compared to global competitors, indicating potential challenges ahead. The company's 5-year EBITDA growth rate of -5.20% also underperforms compared to approximately 75.61% of global competitors.
Conclusion: Evaluating Power Assets Holdings Ltd's Dividend Prospects
The analysis of Power Assets Holdings Ltd's dividend payments, growth rate, payout ratio, profitability, and growth metrics presents a mixed picture. While the company shows strong profitability and a consistent dividend history, its growth metrics and payout ratio raise concerns about the sustainability of future dividends. Investors should consider these factors carefully when making investment decisions. For further exploration of high-dividend yield stocks, GuruFocus Premium users can utilize 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.
