COSCO SHIPPING Holdings Co Ltd's Dividend Analysis
Scrutinizing the Dividend Performance and Sustainability of COSCO SHIPPING Holdings Co Ltd
COSCO SHIPPING Holdings Co Ltd(CICOF) recently announced a dividend of $0.56 per share, payable on 2023-12-22, with the ex-dividend date set for 2023-11-20. 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 COSCO SHIPPING Holdings Co Ltd's dividend performance and assess its sustainability.
What Does COSCO SHIPPING Holdings Co Ltd Do?
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COSCO SHIPPING Holdings Co Ltd is an investment holding company. The company's operating segments include Container shipping business, Terminal business, and Corporate and other operations. It generates maximum revenue from the Container shipping business segment. Its geographical segments include America, Europe, Asia Pacific, Mainland China, and Other international markets.
A Glimpse at COSCO SHIPPING Holdings Co Ltd's Dividend History
COSCO SHIPPING Holdings Co Ltd has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a bi-annual basis. However, the data for the increase in dividends each year since a specific date is not available. Therefore, it is not possible to confirm if COSCO SHIPPING Holdings Co Ltd qualifies as a dividend king, which requires a history of increasing dividends for at least 50 consecutive years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down COSCO SHIPPING Holdings Co Ltd's Dividend Yield and Growth
As of today, COSCO SHIPPING Holdings Co Ltd currently has a 12-month trailing dividend yield of 49.14% and a 12-month forward dividend yield of 27.42%. This suggests an expectation of decreased dividend payments over the next 12 months. The 5-year yield on cost for COSCO SHIPPING Holdings Co Ltd stock is approximately 49.14%.
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 2023-09-30, COSCO SHIPPING Holdings Co Ltd's dividend payout ratio is 1.65, which may suggest that the company's dividend may not be sustainable. COSCO SHIPPING Holdings Co Ltd's profitability rank is 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
Robust growth metrics are crucial for the sustainability of dividends. COSCO SHIPPING Holdings Co Ltd's growth rank of 7 out of 10 suggests a good growth trajectory. The company's revenue per share and the 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of approximately 36.10%, outperforming about 90.96% of global competitors. Furthermore, the 3-year EPS growth rate shows a remarkable average yearly increase of approximately 307.80%, outperforming about 98.87% of global competitors. Lastly, the 5-year EBITDA growth rate of 236.10% outperforms approximately 99.56% of global competitors.
Next Steps
In conclusion, while COSCO SHIPPING Holdings Co Ltd's dividend yield is currently high, the anticipated forward yield indicates a potential decrease in dividend payments. The sustainability of these payments is under scrutiny due to the payout ratio. However, the company's strong profitability and exceptional growth metrics present a compelling case for the future. Investors should consider these factors alongside industry trends and the company's strategic initiatives when evaluating COSCO SHIPPING Holdings Co Ltd as a potential investment for dividend income. GuruFocus Premium users can further explore high-dividend yield opportunities 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.
This article first appeared on GuruFocus.
