An analysis of the company's dividend history, yield, and growth rates
China Shineway Pharmaceutical Group Ltd (CSWYF, Financial) recently announced a dividend of $0.12 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-12. 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 deep dive into China Shineway Pharmaceutical Group Ltd's dividend performance and assess its sustainability.
What Does China Shineway Pharmaceutical Group Ltd Do?
China Shineway Pharmaceutical Group Ltd is an investment holding company in the People's Republic of China. Principally, it is engaged in the research, development, manufacturing, and trading of modern Chinese medicines. The company's products comprise injection, soft capsule, granule, and others of which injection generates maximum revenue to the company.
A Glimpse at China Shineway Pharmaceutical Group Ltd's Dividend History
China Shineway Pharmaceutical Group Ltd has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down China Shineway Pharmaceutical Group Ltd's Dividend Yield and Growth
As of today, China Shineway Pharmaceutical Group Ltd currently has a 12-month trailing dividend yield of 6.59% and a 12-month forward dividend yield of 8.21%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, China Shineway Pharmaceutical Group Ltd's annual dividend growth rate was 12.80%. Extended to a five-year horizon, this rate decreased to 10.90% per year. And over the past decade, China Shineway Pharmaceutical Group Ltd's annual dividends per share growth rate stands at 4.70%.
Based on China Shineway Pharmaceutical Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of China Shineway Pharmaceutical Group Ltd stock as of today is approximately 11.05%.
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 2023-06-30, China Shineway Pharmaceutical Group Ltd's dividend payout ratio is 0.36.
China Shineway Pharmaceutical Group Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks China Shineway Pharmaceutical Group Ltd's profitability 9 out of 10 as of 2023-06-30, 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. China Shineway Pharmaceutical Group Ltd's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and China Shineway Pharmaceutical Group Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. China Shineway Pharmaceutical Group Ltd's revenue has increased by approximately 14.80% per year on average, a rate that outperforms than approximately 76.15% 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, China Shineway Pharmaceutical Group Ltd's earnings increased by approximately 14.60% per year on average, a rate that outperforms than approximately 54.5% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 8.40%, which outperforms than approximately 49.75% of global competitors.
Next Steps
Considering China Shineway Pharmaceutical Group Ltd's consistent dividend payments, robust growth rate, healthy payout ratio, and strong profitability, it appears to be a promising prospect for dividend investors. However, as with any investment, it's essential to conduct thorough research and consider the company's overall financial health and market conditions before making a decision.
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