Assessing the Sustainability and Prospects of COSCO SHIPPING Ports Ltd's Dividends
COSCO SHIPPING Ports Ltd (CSPKY, Financial) recently announced a dividend of $0.2 per share, payable on 2024-07-05, with the ex-dividend date set for 2024-04-15. 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 look into COSCO SHIPPING Ports Ltd's dividend performance and assess its sustainability.
What Does COSCO SHIPPING Ports Ltd Do?
COSCO SHIPPING Ports Ltd is a leading port operator and investor in China. The company's segments include Terminals and related businesses and Others. It generates maximum revenue from the Terminals and related businesses segment. Geographically, it has a presence in Mainland China (excluding Hong Kong), Europe, and other regions.
A Glimpse at COSCO SHIPPING Ports Ltd's Dividend History
COSCO SHIPPING Ports 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.
Breaking Down COSCO SHIPPING Ports Ltd's Dividend Yield and Growth
As of today, COSCO SHIPPING Ports Ltd currently has a 12-month trailing dividend yield of 5.74% and a 12-month forward dividend yield of 6.63%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, COSCO SHIPPING Ports Ltd's annual dividend growth rate was 3.20%. Extended to a five-year horizon, this rate increased to 10.40% per year. And over the past decade, COSCO SHIPPING Ports Ltd's annual dividends per share growth rate stands at -1.20%.
Based on COSCO SHIPPING Ports Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of COSCO SHIPPING Ports Ltd stock as of today is approximately 9.41%.
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. 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 2023-12-31, COSCO SHIPPING Ports Ltd's dividend payout ratio is 0.35.
COSCO SHIPPING Ports Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks COSCO SHIPPING Ports Ltd's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. COSCO SHIPPING Ports Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and COSCO SHIPPING Ports Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. COSCO SHIPPING Ports Ltd's revenue has increased by approximately 9.30% per year on average, a rate that outperforms approximately 52.77% 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, COSCO SHIPPING Ports Ltd's earnings increased by approximately 3.70% per year on average, a rate that outperforms approximately 37.16% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 1.70%, which outperforms approximately 31.37% of global competitors.
Concluding Insights on CSPKY's Dividend Outlook
In conclusion, COSCO SHIPPING Ports Ltd's upcoming dividend, historical consistency, and the growth in dividend payments reflect positively on its financial health. The company's prudent payout ratio coupled with strong profitability and growth metrics provide confidence in the sustainability of its dividends. For investors seeking income-generating investments, COSCO SHIPPING Ports Ltd presents an intriguing option, particularly when considering the potential for dividend growth. As always, it is essential for investors to conduct their due diligence and consider their investment strategies in the context of their portfolios. For those interested in exploring further, GuruFocus Premium users can screen for high-dividend yield stocks using 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.
