An analysis of the company's dividend history, yield, growth rates, and future prospects
SIIC Environment Holdings Ltd (AWAEF, Financial) recently announced a dividend of $0.01 per share, payable on 2023-09-28, with the ex-dividend date set for 2023-09-12. 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 SIIC Environment Holdings Ltd's dividend performance and assess its sustainability.
About SIIC Environment Holdings Ltd
SIIC Environment Holdings operates in water treatment, solid waste treatment, and other environment-related businesses. It designs and constructs water treatment systems and plants for private and public clients. In addition, the company constructs and operates water-related infrastructure under service concession arrangements that can last decades. Some projects are financed, built, and transferred to an external party at the end of the concession period. SIIC Environment has four operating segments: construction; Water and Sludge Treatment (majority of total revenue), water supply and waste incineration. Activities related to waste incineration are primarily granted under concession arrangements, and must meet a specified level of serviceability. The company primarily operates in China.
SIIC Environment Holdings Ltd's Dividend History
SIIC Environment Holdings Ltd has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
SIIC Environment Holdings Ltd's Dividend Yield and Growth
As of today, SIIC Environment Holdings Ltd currently has a 12-month trailing dividend yield of 7.67% and a 12-month forward dividend yield of 5.20%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, SIIC Environment Holdings Ltd's annual dividend growth rate was 11.90%. Extended to a five-year horizon, this rate decreased to 8.60% per year. Based on SIIC Environment Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of SIIC Environment Holdings Ltd stock as of today is approximately 11.59%.
Payout Ratio and Profitability: A Look at SIIC Environment Holdings Ltd's Dividend Sustainability
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, SIIC Environment Holdings Ltd's dividend payout ratio is 0.25.
SIIC Environment Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks SIIC Environment Holdings 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.
SIIC Environment Holdings Ltd's Growth Metrics and Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. SIIC Environment Holdings 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 SIIC Environment Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. SIIC Environment Holdings Ltd's revenue has increased by approximately 12.20% per year on average, a rate that outperforms than approximately 66.8% 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, SIIC Environment Holdings Ltd's earnings increased by approximately 9.40% per year on average, a rate that outperforms than approximately 59.62% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 7.90%, which outperforms than approximately 60.6% of global competitors.
Conclusion
In conclusion, SIIC Environment Holdings Ltd's consistent dividend payments, impressive dividend growth rate, and prudent payout ratio signal a sustainable dividend policy. The company's high profitability and robust growth metrics further bolster the sustainability of its dividends. SIIC Environment Holdings Ltd appears to be a compelling choice for dividend investors, given its performance and future prospects. However, as with any investment, potential investors should conduct their own due diligence before making a decision.
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