Exploring the Sustainability and Growth of Dividends
China Resources Land Ltd (CRBJY, Financial) recently announced a dividend of $1.72 per share, payable on 2024-08-12, with the ex-dividend date set for 2024-06-13. 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 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 leading real estate developer with nationwide coverage in China. Aside from the core development business, CR Land differentiates itself from peers with a significant investment property portfolio with luxury focused MixC malls, and it holds a 73.7% stake in listed property management company China Resources Mixc Lifestyle Services. CR Land is a subsidiary of China Resources Holdings, or CR Holdings, a sizable state-owned conglomerate with a diverse presence in the utilities, consumer goods, medical, and property sectors. CR Holdings holds about a 60% stake in CR Land.
A Glimpse at China Resources Land Ltd's Dividend History
China Resources Land Ltd has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a bi-annually basis. 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 currently has a 12-month trailing dividend yield of 5.89% and a 12-month forward dividend yield of 5.70%. This suggests an expectation of decrease dividend payments over the next 12 months. Over the past three years, China Resources Land Ltd's annual dividend growth rate was 8.20%. Extended to a five-year horizon, this rate increased to 11.00% per year. And over the past decade, China Resources Land Ltd's annual dividends per share growth rate stands at an impressive 18.40%.
Based on China Resources Land Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of China Resources Land Ltd stock as of today is approximately 9.92%.
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, China Resources Land Ltd's dividend payout ratio is 0.38. China Resources Land Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks China Resources Land Ltd's profitability 9 out of 10 as of 2023-12-31, 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 Resources Land 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 Resources Land Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. China Resources Land Ltd's revenue has increased by approximately 8.90% per year on average, a rate that outperforms approximately 54.62% 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 Resources Land Ltd's earnings increased by approximately -4.70% per year on average, a rate that outperforms approximately 39.09% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 0.90%, which outperforms approximately 42.68% of global competitors.
Conclusion: Evaluating Dividend Sustainability and Growth Prospects
Given China Resources Land Ltd's consistent dividend payments, robust growth metrics, and a favorable payout ratio, the company appears well-positioned to sustain its dividend payments in the foreseeable future. Investors should consider these factors when assessing the attractiveness of China Resources Land Ltd as a potential investment for dividend income. For those interested in exploring further, 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.
