Beijing Enterprises Water Group Ltd: A Deep Dive Into Its Dividend Performance
An Analysis of BJWTF's Dividend History, Yield, Growth, and Sustainability
Beijing Enterprises Water Group Ltd (BJWTF) recently announced a dividend of $0.07 per share, payable on 2023-10-19, with the ex-dividend date set for 2023-09-27. 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 Beijing Enterprises Water Group Ltd's dividend performance and assess its sustainability.
Understanding Beijing Enterprises Water Group Ltd's Business
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Beijing Enterprises Water Group Ltd is a provider of waste treatment services in China. The company's business segments are Sewage and reclaimed water treatment and construction services, Water distribution services, and Technical and consultancy services and sales of machineries. Majority of the revenue is derived from the Sewage and reclaimed water treatment and construction services segment.
Tracing Beijing Enterprises Water Group Ltd's Dividend History
Beijing Enterprises Water Group Ltd has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Assessing Beijing Enterprises Water Group Ltd's Dividend Yield and Growth
As of today, Beijing Enterprises Water Group Ltd currently has a 12-month trailing dividend yield of 9.25% and a 12-month forward dividend yield of 9.26%, suggesting an expectation of increased dividend payments over the next 12 months.
Over the past three years, Beijing Enterprises Water Group Ltd's annual dividend growth rate was -10.30%. Extended to a five-year horizon, this rate increased to 11.90% per year. And over the past decade, Beijing Enterprises Water Group Ltd's annual dividends per share growth rate stands at an impressive 15.00%.
Based on Beijing Enterprises Water Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Beijing Enterprises Water Group Ltd stock as of today is approximately 16.23%.
Is Beijing Enterprises Water Group Ltd's Dividend Sustainable?
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, Beijing Enterprises Water Group Ltd's dividend payout ratio is 0.72, which may suggest that the company's dividend may not be sustainable.
Beijing Enterprises Water Group Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Beijing Enterprises Water Group Ltd's profitability 7 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.
Beijing Enterprises Water Group Ltd's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Beijing Enterprises Water Group Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Beijing Enterprises Water Group Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Beijing Enterprises Water Group Ltd's revenue has increased by approximately -4.10% per year on average, a rate that underperforms approximately 90.12% 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, Beijing Enterprises Water Group Ltd's earnings increased by approximately -35.40% per year on average, a rate that underperforms approximately 92.36% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -16.50%, underperforms approximately 90.86% of global competitors.
Conclusion
While Beijing Enterprises Water Group Ltd's dividend payments and growth rate are impressive, the sustainability of these dividends is a concern due to the high payout ratio. Additionally, the company's profitability and growth metrics, although solid, underperform a significant percentage of global competitors. Therefore, investors should carefully consider these factors before making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
