A Detailed Analysis of Sunac Services Holdings Ltd's Dividend Performance and Future Outlook
Sunac Services Holdings Ltd (SSHLF, Financial) recently announced a dividend of $0.24 per share, payable on 2023-10-13, with the ex-dividend date set for 2023-09-27. 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 Sunac Services Holdings Ltd's dividend performance and assess its sustainability.
About Sunac Services Holdings Ltd
Sunac Services Holdings Ltd is engaged in the provision of property management services, value-added services to non-property owners, community living services, and commercial operational services in the PRC.
Understanding Sunac Services Holdings Ltd's Dividend History
Sunac Services Holdings Ltd has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Insights into Sunac Services Holdings Ltd's Dividend Yield and Growth
As of today, Sunac Services Holdings Ltd currently has a 12-month trailing dividend yield of 5.41% and a 12-month forward dividend yield of 5.41%. This suggests an expectation of the same dividend payments over the next 12 months. Based on Sunac Services Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Sunac Services Holdings Ltd stock as of today is approximately 5.41%.
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, Sunac Services Holdings Ltd's dividend payout ratio is 0.72, which may suggest that the company's dividend may not be sustainable.
Sunac Services Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Sunac Services Holdings Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 5 years out of the past 10 years.
Looking at Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Sunac Services 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 Sunac Services Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Sunac Services Holdings Ltd's revenue has increased by approximately 35.30% per year on average, a rate that outperforms approximately 89.92% of global competitors.
Conclusion
Considering Sunac Services Holdings Ltd's consistent dividend payments, robust growth rate, and solid profitability, it appears to be a promising investment for dividend-focused investors. However, its relatively high payout ratio suggests that the sustainability of future dividends may be in question and requires careful observation. As always, investors are advised to conduct their own comprehensive analysis before making investment decisions.
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