Exploring the Sustainability and Growth of Dividends
China Resources Land Ltd (CRBJF, Financial) recently announced a dividend of $1.37 per share, payable on July 26, 2024, with the ex-dividend date set for June 12, 2024. 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 delve into China Resources Land Ltd's dividend performance and assess its sustainability.
What Does China Resources Land Ltd Do?
China Resources Land Ltd, or CR Land, is a prominent real estate developer with expansive operations across China. Beyond its core development business, CR Land stands out with a substantial investment property portfolio, which includes luxury-focused MixC malls. It also holds a 73.7% stake in the listed property management company, China Resources Mixc Lifestyle Services. CR Land is a subsidiary of China Resources Holdings, or CR Holdings, a large state-owned conglomerate with activities spanning utilities, consumer goods, medical, and property sectors. CR Holdings owns approximately 60% of CR Land.
A Glimpse at China Resources Land Ltd's Dividend History
China Resources Land Ltd has maintained a consistent dividend payment record since 2019, distributing dividends bi-annually. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down China Resources Land Ltd's Dividend Yield and Growth
As of today, China Resources Land Ltd boasts a 12-month trailing dividend yield of 5.18% and a 12-month forward dividend yield of 5.09%, indicating an expectation of slightly decreased dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was 8.20%, which extends to 11.00% per year over a five-year horizon, and an impressive 18.40% over the past decade. Based on the current dividend yield and five-year growth rate, the 5-year yield on cost of China Resources Land Ltd stock as of today is approximately 8.73%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one must evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. As of December 31, 2023, China Resources Land Ltd's dividend payout ratio is 0.38. Additionally, the company's profitability rank of 9 out of 10, combined with a decade of positive net income, suggests robust profitability prospects.
Growth Metrics: The Future Outlook
China Resources Land Ltd's growth rank of 9 out of 10 indicates a strong growth trajectory relative to competitors. The company's revenue per share and 3-year revenue growth rate of 8.90% per year outperforms approximately 54.71% of global competitors. However, the 3-year EPS growth rate shows a decline of -4.70% per year, highlighting challenges in earnings growth. The 5-year EBITDA growth rate of 0.90% also indicates moderate growth, outperforming about 42.73% of global competitors.
In conclusion, while China Resources Land Ltd demonstrates strong dividend payments and growth rates, investors should consider the payout ratio, profitability, and growth metrics when evaluating the sustainability of future dividends. For those seeking high-dividend yield opportunities, the High Dividend Yield Screener on GuruFocus could be an invaluable tool.
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.
