Exploring the Dividend Performance and Sustainability of Nongfu Spring Co Ltd (NNFSF, Financial)
Introduction to Nongfu Spring Co Ltd's Dividend Announcement
Nongfu Spring Co Ltd (NNFSF) recently announced a dividend of $0.82 per share, payable on 2024-08-28, with the ex-dividend date set for 2024-05-23. 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 Nongfu Spring Co Ltd's dividend performance and assess its sustainability.
What Does Nongfu Spring Co Ltd Do?
Founded in 1996, Nongfu Spring is a leading manufacturer of bottled water, ready-to-drink tea, juice, and functional beverages in China. It holds the number-one share in the bottled water market; this segment contributed approximately 55% of the firm's revenue and EBIT in 2022.
A Glimpse at Nongfu Spring Co Ltd's Dividend History
Nongfu Spring Co Ltd has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Nongfu Spring Co Ltd's Dividend Yield and Growth
As of today, Nongfu Spring Co Ltd currently has a 12-month trailing dividend yield of 1.52% and a 12-month forward dividend yield of 1.62%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Nongfu Spring Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Nongfu Spring Co Ltd stock as of today is approximately 1.52%.
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 2023-12-31, Nongfu Spring Co Ltd's dividend payout ratio is 0.65.
Nongfu Spring Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Nongfu Spring Co Ltd's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Nongfu Spring Co Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Nongfu Spring Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Nongfu Spring Co Ltd's revenue has increased by approximately 18.70% per year on average, a rate that outperforms approximately 75.96% 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, Nongfu Spring Co Ltd's earnings increased by approximately 27.20% per year on average, a rate that outperforms approximately 70.33% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 24.90%, which outperforms approximately 80.3% of global competitors.
Conclusion
Considering Nongfu Spring Co Ltd's consistent dividend payments, robust dividend growth rate, sustainable payout ratio, and strong profitability and growth metrics, the company appears well-positioned to continue rewarding investors with attractive dividend yields. 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.
