An in-depth look at Tang Palace's dividend history, growth, and sustainability
Tang Palace (China) Holdings Ltd (TNGPF, Financial) recently announced a dividend of $0.03 per share, payable on 2023-11-17, with the ex-dividend date set for 2023-09-13. 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 Tang Palace (China) Holdings Ltd's dividend performance and assess its sustainability.
About Tang Palace (China) Holdings Ltd
Tang Palace (China) Holdings Ltd is an investment holding company engaged in restaurant operations and food production. The primary production of the group is located in the People's Republic of China. It offers new dishes, seasonal foods, festive celebrations, basic sauce, food ingredient, and casual dining of different regional cuisines. The company has four operating segments - the Southern China region, the Eastern China region, the Northern China region, and the Western China region. Majority of its revenue is generated from the Eastern China segment. The company operates restaurants under the Soup Delice, Tang Palace, Tang's Cuisine, Tang Palace Seafood Restaurant, Canton Tea Room, Social Place, Pepper Lunch, and PappaRich, brands.
Tang Palace's Dividend History
Tang Palace (China) Holdings Ltd has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a yearly basis. Tang Palace (China) Holdings Ltd has increased its dividend each year since -. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 2023 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Analysing Tang Palace's Dividend Yield and Growth
As of today, Tang Palace (China) Holdings Ltd currently has a 12-month trailing dividend yield of 5.34% and a 12-month forward dividend yield of 5.34%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Tang Palace (China) Holdings Ltd's annual dividend growth rate was -35.60%. Based on Tang Palace (China) Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Tang Palace (China) Holdings Ltd stock as of today is approximately 5.34%.
Assessing Dividend Sustainability: 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, Tang Palace (China) Holdings Ltd's dividend payout ratio is 0.00.
Tang Palace (China) Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Tang Palace (China) Holdings Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Future Prospects: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Tang Palace (China) Holdings Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Tang Palace (China) Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Tang Palace (China) Holdings Ltd's revenue has increased by approximately -14.30% per year on average, a rate that underperforms than approximately 77.11% of global competitors.
Concluding Thoughts
Overall, Tang Palace (China) Holdings Ltd's consistent dividend payments, combined with its profitability and growth metrics, suggest a promising outlook for investors seeking steady dividends. However, the recent negative dividend growth rate and the underperformance in revenue growth relative to global competitors warrant careful consideration. The future sustainability of dividends will largely depend on the company's ability to maintain its profitability and revenue growth.
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