Exploring the Sustainability and Growth of Dividends
China Resources Gas Group Ltd (CRGGF, Financial) recently announced a dividend of $1.01 per share, set to be payable on 2024-07-17, with the ex-dividend date on 2024-05-28. This upcoming payment highlights the company's consistent approach to rewarding its shareholders. In this analysis, we will delve into the dividend history, yield, and growth rates of China Resources Gas Group Ltd, utilizing data from GuruFocus to assess the sustainability of its dividends.
What Does China Resources Gas Group Ltd Do?
China Resources Gas Group Ltd operates as a premier gas utilities group in China, focusing on city gas distribution, which includes piped natural gas distribution and natural gas filling stations. As of the end of 2023, the company managed 276 city gas projects across China, recorded annual gas sales of 38.8 billion cubic meters, and connected 57.3 million residential customers, achieving a penetration rate of 59.3%.
A Glimpse at China Resources Gas Group Ltd's Dividend History
China Resources Gas Group Ltd has been consistent in its dividend payments since 2018, distributing dividends bi-annually. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down China Resources Gas Group Ltd's Dividend Yield and Growth
Currently, China Resources Gas Group Ltd boasts a trailing dividend yield of 3.74% and a forward dividend yield of 4.12%. This suggests an anticipated increase in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 6.50%, which increased to 14.70% per year over a five-year period, and an impressive 21.60% over the past decade. As of today, the 5-year yield on cost for China Resources Gas Group Ltd stock is approximately 7.42%.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of the dividend, it's crucial to consider the company's payout ratio. China Resources Gas Group Ltd's dividend payout ratio as of 2023-12-31 is 0.46. This lower ratio indicates that the company retains a significant portion of its earnings, which supports future growth and provides a buffer against downturns. The company's profitability rank is 9 out of 10, reflecting strong earnings relative to its peers, with consistent positive net income over the past decade.
Growth Metrics: The Future Outlook
China Resources Gas Group Ltd's growth rank of 9 out of 10 indicates a promising growth trajectory. The company's revenue per share and 3-year revenue growth rate of 21.30% annually outperforms approximately 83.81% of global competitors. However, its 3-year EPS growth rate and 5-year EBITDA growth rate show mixed performance, indicating areas where the company could improve.
Conclusion
Given China Resources Gas Group Ltd's strong dividend payments, growth rate, and sustainable payout ratio coupled with robust profitability metrics, the company appears well-positioned to continue its dividend payments. Investors should consider these factors when evaluating the stock's potential for long-term income generation. For further exploration of high-dividend yield stocks, GuruFocus Premium users can utilize 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.
