A Comprehensive Analysis of DSFGY's Dividend History, Yield, Growth, and Sustainability
Dah Sing Financial Holdings Ltd (DSFGY, Financial) recently announced a dividend of $0.14 per share, payable on 2023-10-06, with the ex-dividend date set for 2023-09-20. 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 Dah Sing Financial Holdings Ltd's dividend performance and assess its sustainability.
About Dah Sing Financial Holdings Ltd
Dah Sing Financial Holdings Ltd is an investment holding company. It operates in six segments: Personal banking, Commercial banking, Treasury activities, Overseas banking, Insurance business, and Others. The Personal Banking segment deals in deposits from individual customers, the extension of residential mortgage lending, personal loans, insurance, and investment services. The commercial banking segment provides similar services to institutional customers and organizations. The Treasury segment provides foreign exchange services and centralized cash management for deposit-taking & lending, interest rate risk management, management of investment in securities, and the overall funding. Overseas banking businesses include personal banking, commercial banking business activities.
Exploring Dah Sing Financial Holdings Ltd's Dividend History
Dah Sing Financial Holdings Ltd has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Analyzing Dah Sing Financial Holdings Ltd's Dividend Yield and Growth
As of today, Dah Sing Financial Holdings Ltd currently has a 12-month trailing dividend yield of 6.66% and a 12-month forward dividend yield of 6.83%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Dah Sing Financial Holdings Ltd's annual dividend growth rate was -10.50%. Extended to a five-year horizon, this rate increased to -6.50% per year. And over the past decade, Dah Sing Financial Holdings Ltd's annual dividends per share growth rate stands at 0.30%.
Based on Dah Sing Financial Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Dah Sing Financial Holdings Ltd stock as of today is approximately 4.76%.
Is Dah Sing Financial Holdings Ltd's Dividend Sustainable? A Look at 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, Dah Sing Financial Holdings Ltd's dividend payout ratio is 0.32.
Dah Sing Financial Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Dah Sing Financial Holdings Ltd's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
The Future Outlook: Growth Metrics of Dah Sing Financial Holdings Ltd
To ensure the sustainability of dividends, a company must have robust growth metrics. Dah Sing Financial Holdings Ltd's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Dah Sing Financial Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Dah Sing Financial Holdings Ltd's revenue has increased by approximately 7.80% per year on average, a rate that outperforms than approximately 58.07% 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, Dah Sing Financial Holdings Ltd's earnings increased by approximately -13.40% per year on average, a rate that outperforms than approximately 7.36% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -8.10%, which outperforms than approximately 8.74% of global competitors.
Conclusion
In conclusion, Dah Sing Financial Holdings Ltd has shown a consistent dividend payment record, with a promising yield and growth rate. The company's payout ratio and profitability rank suggest a sustainable dividend payment. Moreover, the company's fair growth metrics indicate potential for future earnings and dividend growth. However, investors should continue to monitor these factors over time to ensure the sustainability of Dah Sing Financial Holdings Ltd's dividends.
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