Exploring the Dividend Performance and Sustainability of Jiangxi Copper Co Ltd (JIAXF, Financial)
Jiangxi Copper Co Ltd (JIAXF) recently announced a dividend of $0.66 per share, payable on 2024-07-18, 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 Jiangxi Copper Co Ltd's dividend performance and assess its sustainability.
What Does Jiangxi Copper Co Ltd Do?
Jiangxi Copper Co Ltd engages in copper mining and dressing; smelting and processing; extraction, and processing of precious and scattered metal, and sulphuric chemistry. Its products include copper cathode, gold, silver, sulphuric acid, copper foil, selenium, tellurium, rhenium, and bismuth. It has two operating segments: the production and sale of copper-related products and services, and the production and sale of gold-related products and services.
A Glimpse at Jiangxi Copper Co Ltd's Dividend History
Jiangxi Copper Co Ltd has maintained a consistent dividend payment record since 2018, with dividends currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Jiangxi Copper Co Ltd's Dividend Yield and Growth
As of today, Jiangxi Copper Co Ltd currently has a 12-month trailing dividend yield of 3.39% and a 12-month forward dividend yield of 4.04%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, Jiangxi Copper Co Ltd's annual dividend growth rate was 71.00%, which decreased to 23.30% per year over a five-year horizon, and over the past decade, the annual dividends per share growth rate stands at -1.60%.
Based on Jiangxi Copper Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Jiangxi Copper Co Ltd stock as of today is approximately 9.66%.
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. As of 2024-03-31, Jiangxi Copper Co Ltd's dividend payout ratio is 0.27, suggesting that the company retains a significant part of its earnings for future growth and unexpected downturns. Jiangxi Copper Co Ltd's profitability rank of 8 out of 10, combined with a decade of positive net income, underscores its good profitability prospects.
Growth Metrics: The Future Outlook
Jiangxi Copper Co Ltd's strong growth rank of 8 out of 10 indicates a promising growth trajectory relative to its competitors. The company's robust revenue per share and a 3-year revenue growth rate of approximately 17.90% per year, outperforming about 68.07% of global competitors, highlight a strong revenue model. Additionally, its 3-year EPS growth rate of about 41.00% per year, outperforming about 85.68% of global competitors, and a 5-year EBITDA growth rate of 27.20%, outperforming about 76.32% of global competitors, further solidify its capability to sustain dividends.
Conclusion
Considering Jiangxi Copper Co Ltd's consistent dividend payments, robust growth metrics, and a strong payout ratio, the company appears well-positioned to maintain its dividend payments. With a solid track record and promising growth prospects, Jiangxi Copper Co Ltd stands as an attractive option for value investors focused on dividend income. For those interested in further exploring high-dividend yield opportunities, GuruFocus Premium users can utilize 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.
