Exploring the Dividend Performance and Sustainability of Great Wall Motor Co Ltd (GWLLF, Financial)
Great Wall Motor Co Ltd (GWLLF) recently announced a dividend of $0.33 per share, payable on 2024-06-26, with the ex-dividend date set for 2024-05-28. 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 Great Wall Motor Co Ltd's dividend performance and assess its sustainability.
What Does Great Wall Motor Co Ltd Do?
Automobile manufacturer Great Wall Motor is China's market leader in the SUV and pickup truck segments. In 2023, the company sold over 715,000 Haval-branded SUVs and 240,000 WEY- and Tank-branded SUVs, making it the largest SUV manufacturer by sales volume for the 14th year. It also sold more than 200,000 pickup trucks, also ranked number one in sales volume for 25 consecutive years. China's domestic market accounts for about 70% of Great Wall's revenue in 2023, with the balance coming from Russia, the Middle East, South Africa, Australia, and Chile, among others.
A Glimpse at Great Wall Motor Co Ltd's Dividend History
Great Wall Motor Co Ltd has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Great Wall Motor Co Ltd's Dividend Yield and Growth
As of today, Great Wall Motor Co Ltd currently has a 12-month trailing dividend yield of 2.39% and a 12-month forward dividend yield of 2.40%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Great Wall Motor Co Ltd's annual dividend growth rate was 3.80%. Extended to a five-year horizon, this rate decreased to -1.70% per year. And over the past decade, Great Wall Motor Co Ltd's annual dividends per share growth rate stands at -3.10%.
Based on Great Wall Motor Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Great Wall Motor Co Ltd stock as of today is approximately 2.19%.
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 2024-03-31, Great Wall Motor Co Ltd's dividend payout ratio is 0.25.
Great Wall Motor Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Great Wall Motor Co Ltd's profitability 7 out of 10 as of 2024-03-31, 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. Great Wall Motor Co 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 Great Wall Motor Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Great Wall Motor Co Ltd's revenue has increased by approximately 18.60% per year on average, a rate that outperforms approximately 75.65% 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, Great Wall Motor Co Ltd's earnings increased by approximately 7.20% per year on average, a rate that outperforms approximately 38.24% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -2.20%, which outperforms approximately 27.93% of global competitors.
Conclusion
Considering Great Wall Motor Co Ltd's consistent dividend payments, solid payout ratio, and robust profitability and growth metrics, the company stands as a potentially reliable dividend-paying stock. Investors seeking to diversify their portfolios with dividends might find Great Wall Motor Co Ltd an attractive option. For those looking to explore 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.
