Exploring the Sustainability and Growth of CRPJY's Dividends
Introduction to China Resources Power Holdings Co Ltd's Dividend
China Resources Power Holdings Co Ltd (CRPJY, Financial) has recently announced a dividend of $1.13 per share, scheduled for payment on August 6, 2024, with the ex-dividend date on June 11, 2024. This upcoming dividend payout highlights the importance of understanding the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis will delve into the dividend performance of China Resources Power Holdings Co Ltd and evaluate its future sustainability.
Company Overview
China Resources Power Holdings Co Ltd, also known as CR Power, stands as a prominent independent power producer in China. The company's operations span across wind farms, photovoltaic power plants, hydroelectric, and thermal power plants, primarily located in eastern, central, and southern China. As of the end of 2023, CR Power boasts an operational generation capacity of approximately 59.8 gigawatts, with renewable energy making up about 37.8% of this capacity. Owned majorly by China Resources Holdings, a significant state-owned conglomerate, CR Power holds a substantial market presence with about 62.9% of its shares controlled by its parent company.
Dividend Payment History
Since 2011, China Resources Power Holdings Co Ltd has consistently disbursed dividends, currently on a bi-annual schedule. This consistent dividend payment record underscores the company's financial health and commitment to returning value to shareholders.
Analysis of Dividend Yield and Growth
Currently, China Resources Power Holdings Co Ltd exhibits a trailing twelve-month dividend yield of 3.81% and a forward dividend yield of 4.96%, indicating anticipated increases in dividend payouts over the next year. Over the past three years, the company has achieved an annual dividend growth rate of 7.10%. However, this growth rate has seen a decline over longer periods, with a five-year growth rate of -6.40% per annum and a ten-year rate of -4.50% per annum. Despite these fluctuations, the five-year yield on cost for China Resources Power Holdings Co Ltd stock stands at approximately 2.74% as of today.
Evaluating Dividend Sustainability
The sustainability of dividends is crucially tied to the company's payout ratio. As of December 31, 2023, China Resources Power Holdings Co Ltd's dividend payout ratio was 0.26, suggesting a conservative approach to dividend distribution relative to earnings. This lower payout ratio implies that the company retains a significant portion of its earnings, which supports future growth and provides a buffer against economic downturns. Additionally, the company's profitability rank of 8 out of 10, coupled with consistent positive net income over the past decade, further reinforces its financial stability and capacity to sustain dividends.
Future Growth Prospects
China Resources Power Holdings Co Ltd's growth metrics are robust, indicating a positive outlook for sustaining dividends. The company's revenue per share and three-year revenue growth rate of 14.10% per annum surpass approximately 55.35% of global competitors. Similarly, the three-year EPS growth rate of 16.80% per annum and the five-year EBITDA growth rate of 6.90% also demonstrate strong performance relative to peers. These indicators collectively suggest a healthy trajectory for future earnings and dividend capacity.
Conclusion
In conclusion, China Resources Power Holdings Co Ltd's strategic financial management, consistent dividend payments, and strong growth metrics position it as a potentially reliable choice for dividend-seeking investors. The company's prudent payout ratio and solid profitability provide a foundation for ongoing dividend sustainability, while its positive growth rates offer a promising outlook for future performance. For investors looking to expand their portfolio with high-dividend yield stocks, consider using the High Dividend Yield Screener available to GuruFocus Premium users.
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.
